Sources: Boral Ltd., Sydney; CP staff
The Australian parent company of Georgia-based Boral North America has begun a review of Boral Resources to explore “value creation opportunities.” With 120-plus fly ash collection, processing or distribution sites across the U.S., the business accounted for about $470 million of Boral North America’s $1.56 billion in FY2020 sales.
“We have conducted a detailed study of the U.S. fly ash industry and remain confident in the long term demand dynamics, including significant incremental growth potential from the government’s proposed new infrastructure program,” says Boral Ltd. CEO Zlatko Todorcevski. “New opportunities for supply exist from harvesting landfills, imports and natural pozzolans, which we expect will more than offset the decline in fresh fly ash supply as the U.S. transitions away from coal fired power generation. As we continue to build our alternative supply strategy, strategic alliances and opportunities for partnership will be considered in parallel with divestment options or continued ownership.”
Advisors are scheduled to conclude the Boral Resources review ahead of the company’s announcement of full-year financials in August. Regardless of moves on the U.S. fly ash front, the FY2021 figures will reflect the unloading of a 50/50 stake in Atlanta-based Meridian Brick. Boral Ltd. and its partner, an affiliate of Lone Star Funds in Dallas, announced the planned sale of their clay product joint venture late last year in a $250 million transaction with General Shale in Johnson City, Tenn. In other deals since 2018, Boral NA sold ready mixed and concrete block businesses in Colorado and Texas.