Boral has agreed to sell its US Block business to Quikrete Holdings for US$156 million, subject to customary completion adjustments.
Boral, which acquired the business in mid-2017 through the acquisition of building products manufacturer Headwaters, said the move was in line with its strategy to focus on growing its core building products and fly ash business in North America, its gypsum-based wall and ceilings business in USG Boral and construction materials in Australia.
The company’s CEO and Managing Director, Mike Kane, said the well-performing US Block business is poised to thrive under Quikrete’s ownership.
“The Block business in Texas is an attractive business and Under Quikrete’s ownership, the business is well-positioned to continue to perform strongly,” he said.
“For Boral, this divestment helps to further strengthen our balance sheet and our focus on core operations. It is particularly helpful as we continue to assess the alternatives relating to the future ownership of our USG Boral joint venture.”
“As we have previously indicated, following the merger agreement that has been announced between Knauf and USG Corporation, we are now considering whether to return to 100% Boral ownership or form an expanded joint venture.”
“We have indicated that our preference is to fund any transaction in relation to USG Boral through debt and asset sales, so this divestment is well-timed and a pleasing outcome,” Mr Kane concluded.
The sale is expected to complete in mid-November 2018.