A major player in U.S. brick production and distribution is set to change hands this month as its parent company focuses on core United Kingdom markets. Ibstock plc of Leicestershire, England, has entered into an agreement to sell Glen-Gery Corp. to Brickworks Ltd. of New South Wales, Australia, for $110 million.
|Glen-Gery brick at the Apple Store, Brooklyn, N.Y.|
|With annual shipments of 230 million units, Glen-Gery is the fourth largest clay brick producer in the U.S., according to Brickworks Ltd. Outlining the deal’s rationale and potential for expansion of an overseas platform, Brickworks cited the fragmented nature of the U.S. market, where 37 producers account for just over 5 billion bricks annually.|
|SOURCE: Brickworks Investor Presentation, November 2018|
A deeply rooted brand strongest in the Northeast and Midwest, Wyomissing, Pa.-based Glen-Gery has one veneer stone and nine clay brick plants, plus 10 retail showroom and supply centers. With annual sales upward of $120 million, it will represent just over 15 percent of revenue at Brickworks, Australia’s largest brickmaker and a leading source of building and hardscape units on its home turf and New Zealand.
“We believe the transaction is an ideal market entry into the attractive U.S. industry, with Glen-Gery having established a leading market position in its core geographic area and a reputation for excellent product quality,” says Brickworks Building Products North America President Mark Ellenor. “By combining these two great businesses, we can learn from each other and become even better.”
“As leaders in our respective markets, we look forward to the potential for strengthening and expanding our combined companies,” adds Glen-Gery President Greg Silvestri. “Our partnership with Brickworks will enable shared technology advancements and innovations, and the expansion of Glen-Gery’s product diversity and market coverage.”
BORAL EXITS CONCRETE BLOCK PRODUCTION IN QUIKRETE HOLDINGS DEAL
Sydney-based Boral Ltd. has sold its Texas concrete masonry operations to Atlanta-based Quikrete Holdings Inc., for $156 million. 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, Kane 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.”