USG Boral JV to acquire Knauf Asia Plasterboard from Knauf for $532.5m.

The USG Boral JV will acquire Knauf Asia Plasterboard, which includes China and South East Asia, for $532.5m, subject to regulatory approvals. The JV will provide $262m to partially fund the $532.5m acquisition, while Boral and Knauf will each contribute $135m to equally fund the balance. This is a compelling investment for Boral’s shareholders and is in line with Boral’s strategy to invest in the plasterboard business, which is a low capital-intensive business with an attractive long-term growth profile. "After fully assessing a broad range of alternatives relating to our USG Boral joint venture, we are very pleased to announce this agreement with Knauf. The transaction is in line with Boral’s strategy to invest in low capital-intensive, high growth businesses. The expanded joint venture in Asia will be a world-class operation, bringing together Knauf – now the world’s largest plasterboard manufacturer - and USG Boral in Asia, which has an enviable position in the fastest growing plasterboard region in the world," Mike Kane, Boral’s CEO & Managing Director.