In 2019, Dallas, Texas-based Eagle Materials announced plans to separate its heavy and light materials businesses into independent, publicly-traded companies. The company provided an update on the split, including names of the separate businesses and CEOs. Eagle initially targeted the summer for the completion of the separation.
The company’s heavy materials business will be spun-off and named Eagle Materials. Current Eagle Materials chairman Mike Nicolais will become chairman of the new company and current Eagle Materials president and CEO will assume the president and CEO of the heavy materials business. The light material business will be named American Gypsum Company. Current board member Dave Powers, a former Eagle Materials CEO, will become chairman of American Gypsum and Eagle Materials CFO Craig Kesler will become president and CEO of the light materials business.
“It is a board imperative that both companies be launched this year with the experienced leadership required to assure continued success and to provide continuity on the factors that have made these businesses the benchmark operating performers in their respective industries,” Nicolais said in a public statement. “We are fortunate to have great leadership options due to the strength and experience in our ranks.”
After the separation, Eagle Materials’ existing heavy materials business, and U.S.-heartland cement plant system with complementary concrete, aggregate, and sand operations, is expected to produce strong margins and significant cash flows, according to the company. The company will remain focused on low-cost production and operate in key U.S. geographies with favorable market dynamics.
The light materials business will produce gypsum wallboard and recycled paperboard. The business includes an integrated paperboard mill that utilizes advanced technologies to supply the wallboard plants with high-performing, low-cost facing paper.
The current, single entity of Eagle Materials manufactures and distributes cement, gypsum wallboard, recycled paperboard, concrete, aggregates, and sand from more than 75 manufacturing facilities across the United States.
