Owens Corning has reached a definitive agreement with Boral Industries Ltd. to sell its Masonry Products business.
The divestiture will be in two stages: Owens Corning will sell a 50% stake in its Masonry Products business to Boral Industries Ltd. for $45 million at closing. The Masonry Products business will then be operated jointly until early 2014, after which Owens Corning will sell its remaining 50% stake for $45 million and may receive additional proceeds depending on the business’ financial performance in 2013. Owens Corning will record an impairment charge estimated to be $115 million, which is primarily related to goodwill and other intangible assets assigned to the business in 2006 as part of fresh start accounting.
Boral will assume operational control of the business at closing. During the period of joint ownership, Owens Corning and Boral will work together to ensure maximum performance. The transaction was expected to close by the end of 2010 and is subject to regulatory approval.
for additional details.