Fibre-cement maker James Hardie Industries has agreed to acquire US-based outdoor building products company AZEK in a cash and stock deal worth $8.75 billion, including debt. The acquisition is aimed at boosting growth with new offerings to homeowners.
Under the deal, AZEK shareholders will receive $26.45 in cash and 1.034 James Hardie shares for each AZEK share, valuing their stake at $56.88 per share – a 37.4% premium. The combined company’s board of directors has recommended accepting the offer.
AZEK manufactures wood decking, pergolas, and outdoor living products. The acquisition is expected to drive synergies and enhance profitability and cash flow. James Hardie expects additional earnings of at least $350 million and cost savings of $125 million.
The deal will be funded through debt financing, with a fully committed bridge financing facility secured. Once complete, the companies’ shares will be listed on the New York Stock Exchange, while their Australian listing remains in place.
James Hardie plans to execute up to $500 million in share repurchases within 12 months of the transaction’s closing. The acquisition is anticipated to close in the second half of 2025, pending regulatory approvals.
Source: https://www.cnbc.com/2025/03/23/australias-james-hardie-to-acquire-us-based-azek-in-8point8-billion-deal-.html