Forterra, Inc. (NASDAQ:FRTA) Files An 8-K Other EventsItem 8.01. OTHER EVENTS.
On December 8, 2017, the Delaware Court of Chancery granted the motion to dismiss filed by certain affiliates of Forterra, Inc. (the “Company”) relating to a lawsuit filed by affiliates of HeidelbergCement A.G. (“Plaintiffs”) concerning an earn-out contingency under the terms of the agreement governing the 2015 acquisition of certain businesses from Plaintiffs. The Court ruled that the independent accounting arbitrator appointed to the acquisition agreement (the “Neutral Accountant”) has jurisdiction over the calculation of adjusted EBITDA under the acquisition agreement, including what information can be considered as part of the calculation. The Court also ruled that Plaintiffs’ indemnification claims were barred due to the contractual statute of limitations. This ruling can be appealed. In addition, the earn-out calculation itself remains subject to the analysis and interpretation of the Neutral Accountant. The Company is pleased with the ruling, in which all of the relief that Plaintiffs sought was denied by the Court. See Note 14 to the unaudited condensed consolidated financial statements included in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2017 for additional information relating to these matters.
About Forterra, Inc. (NASDAQ:FRTA)
Forterra, Inc. is a manufacturer of pipe and precast products. The Company offers products for a range of water-related infrastructure applications, including water transmission, distribution and drainage. The Company operates approximately 95 facilities. Its products are available in the United States and Eastern Canada.
