Colorado construction materials operations to be sold to Brannan Sand and Gravel Co. for US$127 million
BORAL Ltd have agreed to sell their Concrete & Quarries business in Denver, Colorado, to Brannan Sand and Gravel Company LLC for US$127 million.
On completion, Boral expect to recognize a pre-tax profit on the sale of around US$45 million, subject to customary completion adjustments, which will be reported as a significant item in financial year 2018. Proceeds from the sale will be used to reduce debt.
Boral’s chief executive officer and managing director, Mike Kane (pictured), said that while the Colorado construction materials business has performed well, these are the only concrete and quarry operations that Boral own in the US and the business is non-core.
‘Boral’s strategy in the US is focused on growing our building products and fly ash businesses. As we continue to strengthen our core business and deliver synergies from the Headwaters acquisition, the time is right for Boral to realize value by divesting the construction materials business in Colorado,’ he explained.
The transaction is expected to complete on or around 31 May 2018 and is subject to customary regulatory approvals.
Boral have owned the Colorado construction materials operations since 2004. For the six months ended December 2017, the US Concrete & Quarries business contributed US$52 million of revenue to Boral North America.