Australia’s Boral Limited announced that it has agreed to sell its Concrete & Quarries business in Denver to Brannan Sand and Gravel Co. for $127 million. The sale includes its quarry operation in Brighton, Colo.
Founded in 1906, the Brannan family of companies commands “a unique position in the asphalt, concrete and aggregate marketplace” in Denver by providing a wide range of aggregate, asphalt paving and maintenance services, ready-mixed concrete and specialized construction services.
On completion, Boral expects to recognise a pre-tax profit on sale of around $45 million subject to customary completion adjustments, which will be reported as a significant item in FY2018. Proceeds from the sale will be used to reduce debt.
Boral’s CEO and Managing Director Mike Kane said that while the Colorado construction materials business has performed well, these are the only concrete and quarry operations that Boral owns in the United States and the business is non-core.
“Boral’s strategy in the United States is focused on growing our building products and fly ash businesses. As we continue to strengthen our core business and deliver synergies from the Headwaters acquisition, the time is right for Boral to realize value by divesting the construction materials business in Colorado,” said Kane.
The transaction is expected to be complete on or around May 31, and is subject to customary regulatory approvals.
Boral has owned the Colorado construction materials operations since 2004, when the company acquired Ready Mixed Concrete Co. and the assets of Owens Brothers Concrete, positioning Boral as the third largest concrete producer in the greater Denver metropolitan area. Ready Mixed Aggregates became Boral Aggregates, a leading supplier of quality aggregate materials to internal and external customers. Best Block and McKinney became Boral Best Block, a company offering structural building solutions through quality architectural concrete block, Keystone retaining walls, pavers, cultured stone and other masonry products.
For the six months ended December 2017,the U.S. Concrete & Quarries business contributed $52 million of revenue to Boral North America.