Boral Limited has agreed to sell its US Concrete and Quarries business in Denver, Colorado to Brannan Sand and Gravel Company.
The business sold for US$127 million, representing a trailing 12 month EV/EBITDA multiple of around 8 to 9 times.
On completion, Boral expects to gain a pre-tax profit on sale of around US$45 million, which will be reported as a significant item in FY2018. Proceeds from the sale will be used to reduce debts.
"Boral's strategy in the US is focused on growing our building products and flyash businesses." said Mike Cane, Boral's CEO and Managing Director. "As we continue to strengthen our core business and deliver synergies from the Headwaters acquisition, the time is right for Boral to realise value by divesting the construction materials business in Colorado".
The transaction is expected to be complete on or around 31st May 2018 and is subject to customary regulatory approvals.
Read the article online at: https://www.worldcement.com/the-americas/22052018/boral-sells-us-concrete-and-quarries-business/