Boral Limited (BLD) announced that it has reached an agreement for the acquisition in two stages of Owens Corning Masonry Products LLC from Owens Corning, the leading stone veneer company in North America. The acquisition of Cultured Stone is the latest move by Boral Limited to expand its offerings in the United States ahead of an expected improvement in the building sector.
Under the terms of the agreement, the acquisition of Cultured Stone will occur in two stages an acquisition of a 50% interest for US$45 million; and an acquisition of the remaining 50% interest not owned by Boral, for a multiple of 7.0 times 50% of CY2013 EBITDA, subject to a minimum of US$45 million. The first stage of the acquisition is expected to be completed by the end of December 2010. The second stage of the acquisition will be completed in early 2014.
Cultured Stone is the leading stone veneer producer in the United States with plants in California and South Carolina. Its key products, Cultured Stone, ProStone and Versetta Stone have market leading positions and are sold through distributors across the United States and Canada.
The Chief Executive of Boral, Mark Selway, said “The purchase of Cultured Stone represents a further step in the Group’s strategy to extend our already strong position in the United States cladding market, across both product and geographic dimensions.