Boral agrees to sell North American building products business

by Christopher Brinckerhoff | 21 June 2021 12:00 am

Sydney, Australia-based Boral Ltd[1]. announced that it has entered into an agreement with a subsidiary of Houston-based Westlake Chemical Corp.[2] to sell its North American building products business, including Irvine, Calif.-based Boral Roofing LLC[3], for $2.15 billion. The transaction will not result in the payment of any income tax in the U.S. or Australia, as a result of carried forward losses.

Zlatko Todorcevski, CEO and managing director at Boral, said, “We are pleased to announce that we have entered into an agreement to sell Boral’s North American building products business, which is expected to unlock significant value for Boral’s shareholders. This agreement follows an extensive market testing process in which we received strong interest from a broad range of high-caliber potential buyers.

“The sale will generate further significant surplus capital once the transaction closes. In accordance with Boral’s financial framework, after optimizing Boral’s net debt position and allowing for reinvestment needs, we expect a significant surplus to be available for distribution to Boral’s shareholders.

“The board will determine the most appropriate way to return surplus capital to shareholders taking into account the availability of franking credits, the relative share price and the preferences of Boral shareholders as a whole.

“Boral has owned and operated building products businesses in the USA for more than 40 years and we recognize and value the contribution that our North American building products’ employees and customers have made to the Boral Group over that time.

“The level of market interest and the acquisition price reflects the fact that Boral’s Building Products is a portfolio of great businesses with quality products, strong brands and good positions in many geographies.

“We are confident that this change of ownership to Westlake, with its strong history and focus on innovative exterior building products, will support the prospects for our North American building products business, which includes roofing, stone, light building products and windows businesses.”

The transaction is expected to be completed in the first half of fiscal year 2022, allowing for the regulatory approval process.

Source URL: https://www.metalconstructionnews.com/news/daily-news/boral-agrees-to-sell-north-american-building-products-business/

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