Australia’s Boral Limited and the US-headquartered USG Corporation have announced the completion of their 50:50 joint venture, USG Boral Building Products. The joint venture will include building products sales and operations in Asia, Australasia and the Middle East, including a plasterboard production capacity of 633 million m2 across 25 plasterboard lines and 12 countries.
The venture comprises Boral’s Gypsum Division, which includes its plasterboard operations in Asia and Australia, and USG’s businesses in Asia and the Middle East. In addition, the venture will have exclusive access to USG’s ceilings, cement board, fibre board, lightweight plasterboard and joint compound building products technologies in the regions in which it operates. USG also made a US$500 million cash payment to Boral under the 50:50 agreement.
The two companies will share management of USG Boral Building Products. Boral’s Frederic de Rougemont has been appointed as CEO and USG’s Paul Monzella will serve as CFO. USG has selected Jennifer Scanlon as Chairman. The right to appoint the Chairman will alternate every two years.
“The joint venture gives USG an immediate, significant presence across some of the fastest growing construction markets in the world, and positions both USG and Boral to win over the long-term in Asia, Australasia, and the Middle East. Our teams will work quickly to deploy USG’s technologies to the facilities in the region and we expect that our combined efforts will enable the joint venture and its customers to achieve greater productivity and profitability,” commented Jim Metcalf, USG’s Chairman, President and CEO.
“The completion of the transaction is an important milestone in our joint venture with USG. Our teams have come together effectively and productively and have great momentum and determination to deliver on the strategic imperatives of the joint venture. We are focused on maximising value for our customers and our shareholders,” said Boral’s CEO and Managing Director, Mike Kane. “The joint venture aligns with Boral’s goal to grow earnings from Asia and to transform the business over the longer-term through innovative product and manufacturing solutions. Boral’s balance sheet will also strengthen considerably as a result of the transaction.”
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/asia-pacific-rim/06032014/boral_and_usg_complete_joint_venture_855/