Eagle Materials conducting portfolio review
Mike Nicolais named new chairman of Eagle.
Eagle Materials announced that it is conducting a review of its businesses, which could result in a sale.
In a statement issued today, Dallas, Texas-based Eagle said that it regularly evaluates strategic, operational, financial, and capital allocation policies to enhance shareholder value.
“The company will carefully consider the full range of options focused on enhancing the value creation potential of Eagle, including separating the businesses and evaluating potential transactions, among other strategic and financial alternatives,” Eagle said.
Eagle noted that all options will not be disclosed unless approved by the board as a “definitive action.”
The company manufactures and distributes Portland cement, gypsum wallboard and recycled gypsum paperboard, and concrete, sand and aggregates from more than 75 U.S. facilities.
“While we are confident that the continued execution of our strategy, combined with our competitive market positions, production capabilities, long-standing commitment to cost discipline and exceptional employees will maximize the value of each individual business, this portfolio review will help ensure Eagle’s inherent value is appropriately reflected in the marketplace and that we are best positioned to enhance shareholder value,” said Mike Nicolais, newly appointed chairman of Eagle Materials.
Nicolais succeeds Rick Stewart, who will continue to serve as a director, and will continue to serve as vice chairman of Highland Partners – a Dallas-based private equity firm.
Eagle also disclosed preliminary fourth quarter results including revenue of $283 to $285 million.
Last month Eagle announced that CEO Dave Powers is retiring as an officer of the company, effective July 1.
Powers will remain on the board of directors and will be succeeded as CEO by Michael Haack, currently president and COO at Eagle.
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