On day one of One Equity Partners’ acquisition of Boral Resources and Green Cement, the two companies were combined to create Eco Material Technologies. Boral Resources was the North American fly ash business of Australian company Boral Limited. Green Cement manufactures near-zero carbon cement alternatives. The $826 million deal, which closed in February of 2022, is part of One Equity’s focus on green investments. Warburg Pincus co-invested alongside One Equity. 

Green Investments and Business Merit

One Equity identifies and acts on green investment opportunities based on business merit, rather than by working to fulfill an environmental, social, and governance (ESG) mandate, according to the company. The acquisitions and subsequent creation of Eco Material is just one of many ESG-focused investments the middle-market private equity firm has made in its current fund, OEP VIII.

One Equity had been pursuing investment opportunities within the building products industry due to favorable long-term trends, including increased demand for cement-like materials.

Eco Material Technologies is now the largest marketer and distributor of supplementary cementitious materials and near-zero-carbon cements in the United States, according to One Equity.

Eco Material’s positioning will allow it to reclaim approximately two billion tons of ash from landfills and ash ponds around the country. Fly ash represents one of the largest streams of industrial waste, which creates an opportunity for the company to simultaneously solve a serious environmental challenge for utilities, while lowering the carbon footprint of high-emitting industries like cement.

Coming Full Circle

Dick Cashin, who founded One Equity in 2011, built an asset in this sector through a roll-up M&A strategy that was later sold to Boral Limited in the 1990s when he was with a previous firm. Through One Equity’s acquisition of Boral and Green Cement, the company acquired part of Cashin’s legacy business, leading to the asset coming full circle.

For more Deals of the Year coverage, see Mergers and Acquisitions Names the 2023 Middle-Market Deals of the Year.