Boral sells US Block business for $156M to focus on Australia

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Boral has announced it will sell its US Block business for $156 million to focus on its construction materials business in Australia.

The block business will be sold to Quikrete Holdings, subject to completion adjustments, with the sale expected to be complete in mid-November 2018.

Boral has owned the business since May 2017 through the acquisition of Headwaters.

The company does not expect a material after tax profit or loss on sale of the business, however this is subject to customary final working capital adjustments and foreign exchange impacts.

Boral CEO and Managing Director Mike Kane said the Block business had performed well, but the company is focusing on its core building products and fly ash businesses in North America, it’s gypsum-based wall and ceilings business in USG Boral and construction materials in Australia.

“The Block business in Texas is an attractive business and under Quikrete’s ownership, the business is well-positioned to continue to perform strongly,” Mr Kane said.

“For Boral, this divestment helps to further strengthen our balance sheet and our 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 the merger agreement that has been announced between Knauf and USG Corporation, we are now considering whether to return to 100 per cent 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,” he said.