Boral Ltd (ASX: BLD) is set to strengthen its core Australian business following an agreement to acquire certain construction materials assets and operations of the Wagners Group for $173 million.

The deal sees Boral taking hold of Wagners’ quarry, concrete and related assets in the Darling Downs, South East Queensland and Townsville regions and several land parcels with future development potential. A total of 275 employees will transfer to Boral through the acquisition.

Boral said the purchase expands the geographical reach of its construction materials division in attractive and growing markets. The transaction will enhance Boral’s ability to service major Darling Downs/Surat Basin resources projects and the ongoing westward expansion of Queensland’s largest population base. In South East Queensland, Wagners’ network of concrete plants will extend Boral’s existing footprint in key growth corridors and in North Queensland, the acquisition will add a concrete plant and a sand quarry which will enhance Boral’s position in Townsville.

Wagners Group will continue to own and operate its Brisbane cement grinding plant and the sale includes a cement supply arrangement which will augment Boral’s future cement supply position and underpin the future of the Wagners Group cement grinding plant.

Completion remains subject to clearance from the ACCC on terms acceptable to the parties and the finalisation of remaining due diligence and procedural issues. The transaction is expected to be completed in the second half of calendar 2011.