Boral Buys Wagners Assets for $173M

Construction materials supplier Boral (ASX:BLD) says it will purchase assets and operations from Wagners Group for $173 million. Quarry, concrete, and land assets in Darling Downs, South East Queensland, and Townsville are the assets Boral will be buying.

Boral said the Wagners assets included in the deal had revenue of $115m in 2009/2010, with earnings before interest, tax, depreciation and amortisation of approximately $17m.

Boral chief executive Mark Selway said, "The acquisition is an exciting investment in our core Australian construction materials business." Boral said the purchase expected to be earnings per share accretive in 2011/12, representing a 2009/10 multiple of 9.7.

The company said that it is awaiting clearance from competition watchdog the Australian Competition & Consumer Commission and the acquisition is expected to be completed in the second half of 2011.