SYDNEY—Building materials firm Boral Ltd. said it would acquire Headwaters Inc. as the Australia-listed firm moves to expand its presence in the U.S.

On Monday, Boral said it has penned a binding agreement to acquire the building products manufacturer, one of the largest sellers of fly ash in the U.S., for US$24.25 a share in cash, equal to an enterprise value of US$2.6 billion. The offer is a 34% premium to Headwaters' one-month volume weighted average price.

The deal, unanimously recommended by Headwaters directors, is expected to close in mid-2017.

Boral said the deal would be partially financed by a 450 million Australian dollar (US$330 million) institutional placement and a A$1.6 billion accelerated renounceable entitlement offer. The company will also use some debt and existing cash.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

November 20, 2016 19:25 ET (00:25 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
Boral (ASX:BLD)
Historical Stock Chart
Von Okt 2024 bis Nov 2024 Click Here for more Boral Charts.
Boral (ASX:BLD)
Historical Stock Chart
Von Nov 2023 bis Nov 2024 Click Here for more Boral Charts.