Sources: Boral Ltd., Sydney; CP staff
Boral has announced an agreement to sell its Texas concrete masonry operations to Atlanta-based Quikrete Holdings Inc., anticipating a mid-November closing for the $156 million deal. Boral inherited the block production assets with the May 2017 Headwaters Inc. takeover, and has recently moved to streamline its portfolio around building products and fly ash businesses in North America; the USG Boral gypsum-based wall and ceilings joint venture; and, construction materials production in Australia.
Under Quikrete ownership, notes Boral CEO Mike Kane, the Texas block business “is well-positioned to continue to perform strongly. This divestment helps to further strengthen our balance sheet and 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.”
Following announcement of the USG Corp. and Knauf merger agreement, he adds, “We are considering whether to return to 100-percent 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.”