Boral agree to sell North American fly ash business
Divestment will complete strategic refocus on construction materials business in Australia
BORAL Ltd have entered into an agreement with Eco Material Technologies Inc to sell their North American fly ash business for a total consideration of US$755 million (A$1 billion).
The transaction will complete Boral’s portfolio realignment and strategic refocus back on their construction materials business in Australia.
Boral’s chief executive officer and managing director, Zlatko Todorcevski, said: ‘We have undertaken a rigorous and competitive process to determine the best outcome for Boral in relation to the fly ash business and we are pleased to announce an agreement to sell the business to Eco Material Technologies.
‘For Boral’s shareholders, we have now unlocked substantial value through a successful divestment programme.
‘Together with the sale of the North American Building Products business and our stake in Meridian Brick, following finalization of this transaction, we will have divested the North American businesses for more than A$4 billion (US$3 billion).
‘This is a significant milestone that supports our strategy to refocus on our construction materials business in Australia.
‘As was the case with building products in the US, Boral have owned and operated fly ash businesses in the US for some 40 years. It has been an important part of Boral’s history and we recognize and value the contribution our employees and customers in North America have made to Boral over that time.
‘This change of ownership to Eco Materials Technologies, who are focused on growing the business, will be a positive outcome for our people and customers in the fly ash business.’
Allowing for reinvestment needs, Boral say the net proceeds from the sale will add to surplus capital and the board will determine the most appropriate way to return surplus capital to shareholders at the relevant time.
Subject to customary conditions, completion adjustments, and regulatory approvals, the transaction is expected to complete during 2022.