Boral looks to divest hardwood business

Boral is attempting to sell its hardwood timber business,
which has been under review.

The Australian Financial Review reports that the building
products manufacturer has charged Gresham with assisting in the sale of the
division, which is believed to have annual revenues of $80 million, book value
of $100 and earnings of about $10 million.

The report says there is unlikely to be many interested
buyers, but the job will be made easier by the Australian dollar’s recent fall.

As the CEO of engineered wood products company Wesbeam said
this week, the decline in the Australian dollar had made local building products more competitive against imported building products and “given heart” to manufacturers.

According to Boral, its Boral Timber division is “one of the largest suppliers of certified hardwood and softwood in Australia with a wide product range including flooring, structural timber, decking, furniture timber, decorative and cladding.”

Image: Boral