Boral Ltd has reached agreement with Hanson plc to acquire its interest in the Hanson ready-mixed concrete and quarry operations in Thailand for an enterprise value of around $US45m, which includes some $US3m of cash. This price represents a trailing EBITDA multiple of seven times. The acquisition is expected to be completed by the end of July.
The Hanson ready-mixed concrete business is the third-largest concrete and quarry operator in Thailand. Assets include 35 concrete batching plants, more than 250 trucks and tankers, three sand pits and one hard rock quarry. Current annual production is around 1.4 million cubic metres of ready-mixed concrete and 1.5 million tonnes of aggregates, serving the major regions of Thailand including Bangkok and the eastern seaboard.
Executive general manager of Boral’s cement division, Mr Phil Jobe, said: "Boral has built a leading position in pre-mix concrete in Indonesia over 30 years. "The acquisition of Hanson Thailand allows us to further leverage this expertise in Asia. "The Thai concrete market has grown strongly over the past few years and we are attracted to its future growth prospects."