Boral Limited announced that it has entered into an agreement with a subsidiary of Westlake Chemical Corporation to sell its North American Building Products business for $2.15 billion. The transaction will not result in the payment of any income tax in the United States or Australia, as a result of carried forward losses.
Boral’s CEO & Managing Director, Zlatko Todorcevski, said, “We are pleased to announce that we have entered into an agreement to sell Boral’s North American Building Products business, which is expected to unlock significant value for Boral’s shareholders. This agreement follows an extensive market testing process in which we received strong interest from a broad range of high calibre potential buyers. The sale will generate further significant surplus capital once the transaction closes. In accordance with Boral’s financial framework, after optimizing Boral’s net debt position and allowing for reinvestment needs, we expect a significant surplus to be available for distribution to Boral’s shareholders.”
“The Board will determine the most appropriate way to return surplus capital to shareholders taking into account the availability of franking credits, the relative share price and the preferences of Boral shareholders as a whole,” Todorcevski continued. “Boral has owned and operated building products businesses in the USA for more than 40 years, and we recognize and value the contribution that our North American building products’ employees and customers have made to the Boral Group over that time. The level of market interest and the acquisition price reflects the fact that Boral’s Building Products is a portfolio of great businesses with quality products, strong brands and good positions in many geographies. We are confident that this change of ownership to Westlake, with its strong history and focus on innovative exterior building products, will support the prospects for our North American Building Products business, which includes Roofing, Stone, Light Building Products and Windows businesses.”
The transaction is subject to customary conditions precedent and completion adjustments. The transaction is expected to be completed in the first half of fiscal year 2022, allowing for the regulatory approval process. Boral and Westlake will work together to ensure a smooth transition for customers and employees. The profit on sale of the business is expected to be disclosed as part of Boral’s full year FY2021 results on August 24, 2021.
Westlake is a global manufacturer and supplier of materials and innovative products headquartered in Houston, Texas. For more information, visit www.westlake.com.