Headwaters Incorporated Announces the Acquisition of the Assets of LA Ash Products and Services, LLC

SOUTH JORDAN, Utah--()--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.

“The acquisition of the assets of this CFB ash marketer will immediately strengthen our position to meet customers’ needs along the Gulf Coast”

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

Forward Looking Statements

Certain statements contained in this press release are forward-looking statements within the meaning of federal securities laws and Headwaters intends that such forward-looking statements be subject to the safe-harbor created thereby. Forward-looking statements include Headwaters’ expectations as to the managing and marketing of coal combustion products, the production and marketing of building products, the licensing of residue hydrocracking technology and catalyst sales to oil refineries, the development, commercialization, and financing of new technologies and other strategic business opportunities and acquisitions, and other information about Headwaters. Such statements that are not purely historical by nature, including those statements regarding Headwaters’ future business plans, the operation of facilities, the availability of feedstocks, and the marketability of the coal combustion products, building products and catalysts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding future events and our future results that are based on current expectations, estimates, forecasts, and projections about the industries in which we operate and the beliefs and assumptions of our management. Actual results may vary materially from such expectations. Words such as “may,” “should,” “intends,” “plans,” “expects,” “anticipates,” “targets,” “goals,” “projects,” “believes,” “seeks,” “estimates,” “forecasts,” or variations of such words and similar expressions, or the negative of such terms, may help identify such forward-looking statements. Any statements that refer to projections of our future financial performance, our anticipated growth and trends in our businesses, and other characterizations of future events or circumstances, are forward-looking. In addition to matters affecting the coal combustion products, building products, and energy industries or the economy generally, factors that could cause actual results to differ from expectations stated in forward-looking statements include, among others, the factors described in the caption entitled “Risk Factors” in Item 1A in Headwaters’ Annual Report on Form 10-K for the fiscal year ended September 30, 2013, Quarterly Reports on Form 10-Q, and other periodic filings.

Although Headwaters believes that its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that our results of operations will not be adversely affected by such factors. Unless legally required, we undertake no obligation to revise or update any forward-looking statements for any reason. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Our internet address is www.headwaters.com. There we make available, free of charge, our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports, as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. Our reports can be accessed through the investor relations section of our web site.


Headwaters Incorporated
Sharon Madden
Vice President of Investor Relations
(801) 984-9400
Financial Profiles
Tricia Ross
(310) 622-8226

Headwaters Incorporated