Boral has agreed to sell its North American Fly Ash business for around $1 billion to Eco Material Technologies.
The transaction aims to help Boral realign is portfolio and refocus back on its construction materials business in Australia.
Boral’s CEO & Managing Director, Zlatko Todorcevski, said the business has undertaken a rigorous and competitive process to determine the best outcome for Boral in relation to the Fly Ash business.
“This is a significant milestone that supports our strategy to refocus on our construction materials business in Australia,” Todorcevski said.
“As was the case with building products in the US, Boral has owned and operated fly ash businesses in the US for some 40 years. It has been an important part of Boral’s history and we recognise and value the contribution our employees and customers in North America have made to Boral over that time.
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“This change of ownership to Eco Materials Technologies, which is focused on growing the business, will be a positive outcome for our people and customers in the Fly Ash business.”
The new proceeds from the sale will add to surplus capital, allowing for reinvestment needs. The Board will determine the most appropriate way to return surplus capital to shareholders at the relevant time.
The transaction is subject to customary conditions precedent and completion adjustments, and is expected to complete in FY2022, allowing for the regulatory approval process.
Boral and Eco Material Technologies will work together to ensure a smooth transition for customers and employees.