SOUTH JORDAN, Utah–(BUSINESS WIRE)–HEADWATERS INCORPORATED (NYSE: HW), a building products company dedicated to improving lives through innovative advancements in construction materials, today announced acquisition of the assets of LA Ash Products and Services, LLC (“LA Ash”). LA Ash is experienced in adding value to ash products from circulating fluidized-bed (“CFB”) boilers and marketing the ash in areas geographically adjacent to Headwaters’ existing CFB ash sources.
CFB boilers typically use coal, petroleum coke, or biomass as fuel to produce power and steam for utility and industrial applications. While CFB ash is not typically used as a cement replacement in ready mix concrete, it has many other beneficial uses, such as soil and waste stabilization, aggregate applications, and road base.
“The acquisition of the assets of this CFB ash marketer will immediately strengthen our position to meet customers’ needs along the Gulf Coast,” said Bill Gehrmann, President of Headwaters Resources. “Headwaters has excess supply of CFB ash, and LA Ash’s current customer base is demanding more product than it can supply. We should be able to increase our sales of CFB ash to LA Ash’s customer base, and further benefit from its sales staff to promote further use of CFB ash. We are also excited about the added expertise in the management of ash products produced by industrial boilers, enhancing our efforts to increase beneficial use of CFB ash.”
Headwaters Resources currently markets CFB ash along the Gulf Coast from three utility sites, and markets CFB ash and similar ash products in the East and Midwest. CFB ash is typically marketed as a dry or hydrated product. When marketed as a dry product, pricing can approach that of high quality fly ash. The hydrated product is similar to an aggregate and is priced competitively into that market. Combined with LA Ash, we expect incremental dry and hydrated CFB ash sales of more than 300,000 tons primarily in the Louisiana and Texas markets. The acquisition was paid for in cash and will be accretive to earnings in 2014.
About Headwaters Incorporated
Headwaters Incorporated is improving lives through innovative advancements in construction materials through application, design, and purpose. Headwaters is a diversified growth company providing products, technologies and services to the heavy construction materials, light building products, and energy technology industries. Through its coal combustion products, building products, and energy businesses, the Company has been able to improve sustainability by transforming underutilized resources into valuable products. www.headwaters.com