Sources: Boral Ltd., Sydney; Brennan Companies, Denver; CP staff
Boral Ltd. has reached an agreement to sell its Colorado ready mixed and aggregates operations in a $127 million deal with Denver-based Brannan Sand & Gravel Co. Boral Construction Materials spans a namesake Aggregates site plus six plants under the legacy Ready Mixed Concrete Co. brand. Brannan operates three ready mixed, three aggregate and four asphalt plants serving the Denver-anchored Front Range market, plus an underground-construction business.
Boral Construction Materials reported sales just over $50 million for the six months ended December 2017. While the unit has performed well, Boral Managing Director Mike Kane notes that it represents Boral North America’s lone ready mixed concrete and aggregate profit center. “[Our] strategy in the USA is focused on growing our building products and fly ash businesses,” he adds. “As we continue to strengthen our core business and deliver synergies from the Headwaters acquisition, the time is right to realize value by divesting the construction materials business.”
Boral Construction Materials emerged in 2004 from acquisitions in Colorado and Oklahoma as then-Boral USA sought a stake in ready mixed concrete and aggregates, alongside its Material Technologies and Bricks businesses. In the wake of the U.S. housing bubble and early post-recession years, Boral USA acquired the Owens Corning Cultured Stone business and pursued a Headwaters Inc. merger—positioning the ultimate Boral North America as a premier player in fly ash marketing, manufactured stone veneer, plus companion masonry and trim products.