Building products group Boral has entered into agreement to sell its US fly ash businesses as the company continues to deal with fallout from its troubled venture into the North American market.
Boral said today it would sell the business for $1 billion to Eco Material Technologies Inc, completing its ‘portfolio realignment and strategic focus back on its construction materials business in Australia’.
CEO Zlatko Todorcevski, who replaced Mike Kane in the top job following a troubled foray into America, said the company had undertaken a rigorous and competitive process to determine the fate of the fly ash business.
“For Boral’s shareholders, we have now unlocked substantial value through a successful divestment program.
“Together with the sale of the North American Building Products business and our stake in Meridian Brick, following finalisation of this transaction, we will have divested the North American businesses for more than $4 billion.”
In October Boral also agreed to sell its half share in a key building products venture USG Boral for $1.43 billion.
USG Boral is the company’s venture with Germany-based Gebr Knauf KG, which includes the important plasterboard businesses in Australia, New Zealand, Asia and the Middle East.
Todorcevski said the change of ownership of the fly ash business will have a positive outcome for the company’s employees and US customers.
However this retreat from North America has been traumatic for Boral – the company owned the businesses for more than 40 years and Todorcevski said they had been an important part of the company’s history.
Subscribe to our free @AuManufacturing newsletter here.