CSR Limited has reached a deal to acquire AFS Products, in a move that will see the building products company move into the structural walling and load bearing market.
CSR will pay $40 million up front for AFS, funded by existing cash and debt facilities, with additional payments to be made over the next three years.
The group says it expects the acquisition to be earnings accretive in the first year.
CSR applauded the proven sales process and expertise of AFS senior management and said they will remain a part of the company for at least three years.
The building products company has a longstanding relationship with AFS as its supplier of fibre cement products, used in its range of permanent formwork.
“AFS delivers faster and less complex building solutions, resulting in increased speed of construction, lower labour and crane requirements and complements our existing range of non-load bearing walling systems,” CSR managing director Rob Sindel said.
CSR is confident that AFS’ manufacturing operations, based in Goulburn NSW, will be able to handle the increased demand.
AFS’ range of load-bearing wall products will complement CSR’s plasterboard, fibre cement, insulation and concrete panels building products.
“CSR will be able to utilise its extensive network across the construction sector to grow the AFS business while expanding the range of products available for our customers," Mr Sindel said.