By Rhiannon Hoyle
Boral Ltd. said it will sell its North American fly ash business for $755 million to Eco Material Technologies Inc., a company backed by private equity firms One Equity Partners and Quadrant Management Inc.
Australia-listed Boral said the deal includes $735 million on completion and two deferred payments of $10 million on a 12- and 24-month horizon. The agreement also includes a possible earn-out linked to the completion and performance of the Kirkland natural pozzolan mining project, over and above the $755 million, the company said, without providing further details.
The deal completes a strategic overhaul for Boral to refocus on Australia’s construction materials sector. It has sold more than $3 billion of North American assets, including a building products division and a stake in Meridian Brick, Boral said.
“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,” said Boral Chief Executive Zlatko Todorcevski.
Boral, which has owned and operated fly ash businesses in the U.S. for four decades, said profits from the sale will mostly add to surplus capital, which directors will decide how to distribute to shareholders at a later date.
The company expects the deal to be completed in fiscal 2022, it said.
Write to Rhiannon Hoyle at [email protected]
