Building and construction materials group Boral Limited and its joint venture partner, an affiliate of Lone Star Funds, have agreed to sell the North American based Meridian Brick business to Wienerberger for approximately A$328 million, subject to customary adjustments.
Boral’s CEO & Managing Director, Zlatko Todorcevski, said the divestment of Meridian Brick represents ‘the final step in Boral’s exit from brick operations globally’.
“In recent years Boral has divested its interest in bricks in Australia and since forming the bricks joint venture in the US with Lone Star in 2016, the plan was to ultimately prepare the business for sale,” Mr Todorcevski said.
“As part of this process, Meridian’s leadership was refreshed with the appointment of a new CEO in December 2018, and a stronger focus on improving performance.
“The agreed sale represents a fair value for the business and reflects its improved performance. “The divestment of Meridian is a further step in Boral’s portfolio review works.
“It helps to streamline our US business and allows us to further focus on the improvement initiatives underway in the remaining businesses in Boral North America.”
The transaction is expected to complete in FY2021.