Boral CEO and 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.
“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 sale agreement equates to US$125m for Boral’s 50% share, subject to customary adjustments. Subject to exchange rates and final adjustments Boral expects to report a small pre-tax accounting profit on sale of approximately A$10m (US$7.61m) at closing.
The transaction is subject to various closing conditions and regulatory approvals, and the parties are targeting a completion in 2021.
Todorcevski said 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,” he added.