Building and construction material supplier Boral today announced that it will sell the Indonesian Construction Materials Business for US$135 million (approximately A$127 million) to Siam Cement Group (SCG), Thailand’s largest cement company.
The sale which includes Boral’s concrete, quarry and precast operations, including limestone reserves in Indonesia, is part of the Group’s corporate strategy to divest non-cores assets to focus on core product portfolios.
In the 2011 financial year, the collective business generated revenue for US$150 million (approximately A$141 million) and EBITDA of US$14 million (approximately A$13 million), according to an ASX statement.
The sale will be executed through separate sales agreements for quarry and non-quarry businesses, and will required regulatory approvals.
The building and construction material supplier expects the sale of Indonesian Construction Materials Business will occur before the end of the 2012 financial year. Funds from the sale will be used to reduce debt.
Boral is Australia’s largest building and construction material supplier. The company has major operations in Australia, the USA and Asia. The company has over 15,200 employees working across over 700 operating sites.
The company as operated solely as a construction materials and building products group since the Company’s demerger in January 2000, when the old Boral Group, which also included an energy business, was demerged into two industry specific listed companies, new Boral and Origin Energy.
Boral produces and distributes construction materials, including quarry products, cement, flyash, pre-mix concrete and asphalt; and building products, including clay bricks and pavers, clay and concrete roof tiles, concrete masonry products, plasterboard, windows and timber.
Thailand-listed Siam Cement Group (SCG) comprises over 100 companies under 5 business groups, employing approximately 24,000 employees, and handling more than 64,000 product items.