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Fly Like an Eagle


RR053119 EagleMaterialsLogoMay 31, 2019 – Just in time for the weekend, Eagle Materials announced that its long-rumored strategic re-evaluation was over. The envelope, please. The company's board of directors has approved a plan to separate its Heavy Materials and Light Materials businesses into two independent, publicly traded corporations by means of a tax-free spin-off to Eagle shareholders. The separation is expected to be completed in the first half of calendar year 2020. The company also announced that it is actively pursuing "alternatives" for its Oil and Gas Proppants business, which is a polite way to say they want to dump it. It is no secret that hedge fund Sachem Head Capital Management, which owns a company stake and board positions, had determined that the "underperforming" division was a drag on stock price. The new Heavy Materials business unit will include its aggregates operations.