Construction company Boral Limited (ASX:BLD) has agreed to sell its Concrete & Quarries business in Denver, Colorado to Brannan Sand and Gravel Company.
The sale price of US$127 million represents a trailing 12 month EBITDA.
Boral expects to recognise a pre-tax profit on sale of around US$45 million subject to customary completion adjustments, which will be reported as a significant item in FY2018.
Proceeds from the sale will be used to reduce debt.
Boral has owned the Colorado construction materials operations since 2004. The transaction is expected to complete on or around 31 May 2018 and is subject to customary regulatory approvals.
Shares in Boral Limited (ASX:BLD) are up 1.54 per cent to $6.60.