Boral to acquire Headwaters in all-cash deal

Boral Ltd. agreed to purchase US building products manufacturer Headwaters Inc in all cash deal valued at $1.86bn in order to take advantage of an expected increase on infrastructure spending in the States following the surprise electoral victory by Donald Trump.

The price was equivalent to a 34% premium to the US outfit´s one-month volume weighted average price.

Boral said the transaction would increase its exposure to the US building and construction markets, which were experiencing positive momentum, doubling the size of the business and expanding its reach in fly ash, a by-product from coal combustion.

As of 1513 GMT shares in Headwaters were rocketing 18.02% to $23.71.