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 two deferred payments of $735 million upon completion and $10 million over 12- and 24-month horizons. The agreement also includes potential earnings associated with the completion and performance of the Kirkland Natural Pozzolan Mining Project, which is more than $755 million, the company said without providing further details.
The deal completes a strategic overhaul for Boral to refocus Australia’s building materials sector. Boral said it has sold more than $3 billion in North American assets, including a building products division and a stake in Meridian Brick.
“This change of ownership of Eco Materials Technologies, which is focused on growing the business, will have positive consequences for our people and customers in the fly ash business,” said Boral Chief Executive Zlatko Todorsevsky.
Boral, who owned and operated a fly ash business in the US for four decades, said most of the profits from the sale would add to surplus capital, which directors would decide how to distribute to shareholders at a later date.
The company expects the deal to be completed in FY22.
Write to Rhiannon Hoyle at [email protected]