Australian building and construction materials group Boral has agreed to sell its US Block business to Quikrete Holdings for $156m as part of a strategy to focus on its core activities.
Boral has owned the US Block business through the acquisition of Headwaters in May 2017.
The company’s US Block business supplies construction materials and building products.
The US Block business, which has a fly ash processing and distribution business, manufactures concrete block, stone veneer, concrete and clay roof tiles, light building products and windows for residential and commercial construction markets.
It also has a construction materials business in Denver, US, and a 50% stake in the Meridian Brick joint venture.
According to Boral CEO and managing director Mike Kane, while the Block business has performed well, the company is focusing on its core building products and fly ash businesses in North America, its gypsum-based wall and ceilings business in USG Boral and construction materials in Australia.
Kane said: “The Block business in Texas is an attractive business and under Quikrete’s ownership, the business is well-positioned to continue to perform strongly.
“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.
“As we have previously indicated, following the merger agreement that has been announced between Knauf and USG Corporation, we are now considering whether to return to 100% 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.”
The transaction is expected to be completed in November 2018 subject to regulatory approval.
In May 2018, Boral announced that it has agreed to sell US Concrete and Quarries business in Denver, Colorado, to Brannan Sand and Gravel for $127m.
Image: Boral to sell US Block business for $156m to Quikrete Holdings. Photo: Courtesy of PinkBlue/FreeDigitalPhotos.net.