Divestment set to further strengthen company’s balance sheet and focus on core operations
BORAL Ltd have agreed to sell their US Block business to Quikrete Holdings Inc. for US$156 million, subject to customary completion adjustments.
Boral’s chief executive officer and managing director, Mike Kane (pictured), said that while the Block business has been performing well, Boral are focusing on their core building products and fly-ash businesses in North America, their gypsum-based wall and ceilings business in USG Boral, and construction materials in Australia.
‘The Block business in Texas is an attractive business and under Quikrete’s ownership 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.’
Boral say the sale is expected to complete around mid-November 2018, subject to regulatory approval. The company has owned the US Block business since May 2017 through the acquisition of Headwaters.