Boral has completed its pivot away from building products with the sale of its roofing and masonry business to private equity company Lutum.
As Boral continues to create a stronger focus on construction materials, the sale ensured the business was off to a good home, according to a Boral spokesperson.
“(Lutum is) a private Australian company whose founders have collectively over 60 years’ experience in the building, roofing, and construction industry,” the spokesperson told Quarry.
The price of the business was not disclosed due to its negligible size but Boral will keep some relevant infrastructure which will aid in the strength of its construction materials moving forward.
“Boral will retain ownership of land at Emu Plains where the New South Wales concrete roofing plant currently operates and which is part of a broader Boral Construction Materials land holding at Emu Plains,” the spokesperson said.
Boral had owned the business since the 1970s and acquired the Wyee clay tile business from Montoro in the early 1990s.
The business was originally announced as up for sale in Boral’s full year results, released in late August 2021.
Also discussed in the results was the previously announced successful divestment of several other businesses.
These included the sale of Boral’s 50 per cent share in USG Boral to Knauf for $USD1.015 billion ($AUD1.33 billion), plus the sales of Midland Brick, Meridian Brick, the North America Building Products and Fly Ash businesses, and Boral Australia’s softwood and hardwood timber business.
All but the latter were sold for profits in the hundreds of millions of Australian dollars, while the timber business was worth $64.5 million.
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