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Boral sells timber business for $64.5M

Juan Santamaria, previously Managing Director of CPB Contractors, has been promoted to CEO and Managing Director of CIMIC Group. He will begin in the new role on 5 February 2020.

Boral will sell its hardwood and softwood timber business for $64.5 million to Allied Natural Wood Enterprises Pty Limited.

The divestment is part of Boral’s strategy to reset its portfolio of assets, positioning Boral to build a stronger core business.

Boral’s CEO and Managing Director, Zlatko Todorcevski, said the sale of its timber business represents an important milestone.

“In Australia, our focus is on our leading integrated construction materials business and maturing our adjacent growth strategies such as recycling, waste, supplementary cementitious materials and lower carbon products,” Todorcevski said.

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“The sale of Boral’s timber business to the Pentarch Group, a private company with growing interests in the forest products sector, is a good outcome for this business and its customers.

“Boral has owned and operated the timber business for many decades and I want to take this opportunity to formally recognise the enormous contribution employees and management have made over the years to the wider Boral group.”

Boral intends to use the proceeds of the sale to optimise its net debt position, with any surplus after allowing for reinvestment needs to be distributed to Boral shareholders.

Completion of the transaction is subject to customary pre-closing conditions.

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