Boral will acquire Knauf’s 50% stake in USG Boral Australia & NZ for an acquisition price of $200m, returning Boral to 100% ownership, subject to regulatory approval. Boral has agreed to grant Knauf a call option3 to purchase 50% of the business within five years. The grant and exercise of the call option will be subject to Australian and New Zealand regulatory approvals. Boral will retain the entire free cash flow generated by the business under Boral’s 100% ownership. 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. "Returning to full ownership of our plasterboard business in Australia & New Zealand gives Boral increased exposure to a well-positioned, high performing business that generates strong cash flows, recognising that Knauf may choose to exercise its call option within five years. The deal will be funded through debt and proceeds from asset sales, and will be earnings accretive in the first year, even before synergies," Mike Kane, Boral’s CEO & Managing Director.