James Hardie acquires AZEK for $8.75 billion, creating synergy in the building supplies industry.

From Yahoo Finance: 2025-03-24 08:31:00

Australian building products company James Hardie Industries is acquiring U.S. outdoor products maker AZEK in an $8.75 billion cash-and-stock deal. AZEK stock rose over 13% on Monday. This marks the second major acquisition in the building supplies sector within a week, following QXO Inc.’s announcement of acquiring Beacon Roofing Supply Inc. for about $11 billion.

The U.S. housing market has been struggling since 2022 due to rising mortgage rates. Sales of previously owned U.S. homes hit the lowest level in nearly 30 years. The average rate on a 30-year mortgage in the U.S. rose slightly to 6.67%. Analysts see Beacon’s acquisition as positive amid market uncertainty.

Under the James Hardie deal, AZEK shareholders will receive $26.45 in cash and 1.034 ordinary shares of James Hardie for each share of AZEK stock. James Hardie shareholders will own approximately 74% of the combined company, with AZEK stockholders owning 26%. The combined company will offer siding, exterior trim, decking, railing, and more.

James Hardie CEO Aaron Erter highlighted the synergy between the companies in creating demand for homeowners and providing innovative products for contractors. James Hardie’s ordinary shares will list on the NYSE after the deal closes. Both companies’ boards have approved the transaction, set to close in the second half of the year pending AZEK shareholder approval. AZEK’s stock surged more than 13% on Monday.

Read more: Another massive deal in the building supply sector, James Hardie offers AZEK $8.75 billion