Building products manufacturer Brickworks Ltd
(ASX:BKW) has acquired manufacturer of precast concrete panels, Sasso Precast Concrete for $35.25 million.
The company says this transaction will diversify the building products offering and will be immediately earnings per share positive for the company.
Managing Director Lindsay Partridge says precast concrete panels have experienced spectacular growth in walling market share during the past decade, with expectations of further growth particularly in the high-rise residential, commercial and industrial market segments.
Mr Partridge says these are segments of the building products market in which Brickworks does not currently compete, and this acquisition will provide the company with an exciting new platform for growth in its building products division.
The company says it has also received the final payment of $17.5 million form AV Jennings for the sale of Stage 3 of the Eastwood site in Sydney, this finalises the sale of the property with proceeds received totalling $70 million.
Brickworks earned $305.22 million in the 12 months to July 30, 2009.
