Sydney-based Boral Ltd. has acquired the remaining 50 percent of its U.S. concrete roof tile business, MonierLifetile, in a $75 million transaction with Monier Group. A German entity, the latter acquired the MonierLifetile interest from Paris-based Lafarge Group and PAI Partners in 2009.
The deal follows a six-month strategic review leading Boral Ltd. management to a) raise $490 million in an equity offering; b) combine California's MonierLifetile (Irvine) with U.S. Tile (Corona), Boral USA's clay roofing product business; b) shutter under-performing or obsolete assets, including four plants under Roswell, Ga.-based Boral Bricks; c) invest $280 million in Australian quarry and wallboard operations; and, d) streamline corporate structure from seven to five divisions, with four covering Australia and Asia markets, plus Boral USA.
The company has also announced the Boral Production System, a structured process aimed at leaner culture and discipline across the enterprise, irrespective of geographic location, coupled with a range of new products for 2011. We will benefit from the focus on our core activities providing a clearer vision of the potential for organic growth and inter-divisional collaboration as market conditions improve, affirms Boral Chief Executive Mark Selway.