Building materials company Boral has agreed to sell its Midland Brick business to a consortium in Western Australia.
Boral chief executive Mike Kane said the $86 million sale to Linc Property, Birchmead and Fini Group was part of the company’s strategy to focus on construction materials in Australia and reduce exposure to bricks globally.
“Having divested our 40 per cent stake in the CSR Boral Bricks joint venture in 2016, the sale of Midland Brick completes our exit from bricks in Australia, for combined proceeds of around $215 million over the past three years,” Mr Kane said in a statement on Friday.
Boral said it expected net proceeds of the sale to total $82 million, which would be used to reduce debt and “fund strategic growth opportunities” and the transaction would be completed by the end of 2019.
“We have owned and operated Midland Brick for close to 30 years and we recognise and value the contribution the business has made to the Boral Group over that time,” Mr Kane said.
“We also recognise the iconic and much-loved position that the Midland Brick Company has had in WA for 73 years.”