Sources: Boral Ltd., Sydney; CP staff
Boral has consummated a $2.6 billion takeover of South Jordan, Utah-based Headwaters Inc., following clearance from the U.S. Federal Trade Commission. The deal brings the suitor significant fly ash volume, owing to Headwaters’ leading position in coal combustion residuals processing and marketing; additional light building products offerings; and, a doubling of roofing and manufactured stone market stakes. In the latter product category, it unites the Cultured Stone and Eldorado Stone brands.
Boral USA and Headwaters are combining to form a new division, Boral North America, based in Atlanta with annual sales of $1.8 billion. Boral Ltd. projects U.S. business synergies of $30 million to $35 million early on, climbing to $100 million by 2020. Boral USA President and CEO David Mariner will maintain his titles at Boral North America and lead an integration team.
While awaiting U.S. regulator approval on a merger plan unveiled late last year, notes Boral Ltd. CEO Mike Kane, “We have continued to develop our integration plans and are confident in the synergy targets established when the transaction was announced. Both organizations are highly aligned strategically and culturally so it’s an exciting time as we come together to deliver substantial value for customers, shareholders and employees.”
“Reaching this milestone demonstrates the commitment and belief we all have in this value-creating merger of two great businesses,” he adds. “We are ready and well-positioned to deliver on our promises.”