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- Boral (BLD) has entered a deal with Gebr Knauf KG to sell its 50 per cent interest in USG Boral for US$1.015 billion (around A$1.43 billion)
- USG Boral is the joint venture (JV) between Boral and Gebr Knauf KG with each company owning 50 per cent
- This JV includes the plasterboard-based businesses used for walls and ceilings in Australia, New Zealand, Asia, and the Middle East
- The sale is expected to close in FY21 and if the deal doesn’t closed by September 30 2021, either party can terminate and Knauf must pay a termination fee of US$50 million (roughly A$70 million)
- Boral has ended the day a slight 0.21 per cent in the green with shares trading for $4.74 each
Boral (BLD) has entered an agreement with Gebr Knauf KG to sell its 50 per cent interest in USG Boral for US$1.015 billion (around A$1.43 billion).
USG Boral is the joint venture (JV) between Boral and Gebr Knauf KG with each company owning 50 per cent.
This JV includes the plasterboard-based businesses used for walls and ceilings in Australia, New Zealand, Asia, and the Middle East.
Boral has chosen to sell its stake after a thorough assessment and a compelling offer.
“We recognise that it makes sense for Knauf – being the world’s largest plasterboard player – to have 100 per cent ownership of the business,” CEO and Managing Director Zlatko Todorcevski said.
“The sale of Boral’s interest in USG Boral to Knauf will be a step to simplifying Boral’s geographic footprint and product portfolio,” he added.
This sale is expected to close in FY21 and if it hasn’t closed by September 30 2021, and Knauf has not completed certain divestments, either party can terminate and Knauf must pay Boral a termination fee of US$50 million (roughly A$70 million).
Boral also had its annual general meeting today, where it highlighted its FY20 results.
The company’s revenue for FY20 was $5.67 billion, a 1 per cent decrease from $5.73 billion in FY19.
This is the result of a 5 per cent reduction in revenue from Boral Australia and a 2 per cent reduction in its North American operations.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) was down from $1.01 billion in FY19 to $825 million in FY20.
Further, Boral highlighted the appointment of Zlatko Todorcevski as CEO and Managing Director, effective July 1.
He replaced previous CEO and Managing Director Mike Kane who retired in a shock announcement.
The company also appointed a new Chief Finance and Strategy Officer, Tino La Spina, effective October 14.
Boral has ended the day a slight 0.21 per cent in the green with shares trading for $4.74 each in a $5.797 billion market cap.
