Boral Buys Headwaters For $1.8 Billion in Infrastructure Bet
Australia?s Boral Ltd. agreed to buy U.S. building materials company Headwaters Inc. for $1.8 billion in cash as it seeks to benefit from increased infrastructure spending promised by President-elect Donald Trump.
Boral will pay $24.25 per share, according to a statement Monday — 21 percent more than Headwater?s closing price on Friday. It plans to sell A$2.05 billion ($1.5 billion) of shares at A$4.80 each, a 22 percent discount to the last closing price, to help fund the deal, with the balance coming from existing cash and debt.
The Sydney-based company?s largest acquisition will more than double the size of its U.S. operations and boost its fly ash business, which will ?play favorably into the infrastructure spend underway? in the U.S., Boral said in the statement. Trump has pledged a $1 trillion program to rebuild highways, tunnels, bridges and airports.
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