Boral has agreed to sell its US-based Meridian Brick joint venture with an affiliate of Lone Star Funds for $USD250 million ($AUD322.3 million).
The divestment will provide $USD125 million to Boral for its 50 per cent share in the joint venture.
The sale is expected to be completed in the 2021 financial year with the transaction subject to closing conditions and regulatory approvals.
Boral chief executive officer and managing director Zlatko Todorcevski said the sale of the Meridian Brick joint venture is the final step in its move away from brick operations.
“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.”
Todorcevski said the divestment of the Meridian Brick joint venture will streamline Boral’s US business.
“The agreed sale represents a fair value for the business and reflects its improved performance,” he said.
“The divestment of Meridian is a further step in Boral’s portfolio review works. It helps streamline our US business and allows us to further focus on the improvement initiatives underway in the remaining businesses in Boral North America.”