From Yahoo Finance: 2025-03-24 10:55:00

Construction materials manufacturer Azek (NYSE: AZEK) is being acquired by Australia’s James Hardie Industries (NYSE: JHX) for $8.75 billion, including debt. Azek specializes in decking made from recycled materials, while Hardie is known for fiber cement siding. The deal offers a premium of 26% to Azek shareholders, with $26.45 in cash and 1.034 Hardie shares per Azek share.

Azek management believes the acquisition will provide resources of a larger enterprise while allowing investors to capture upside. CEO Jesse Singh stated the deal delivers value to Azek shareholders and offers long-term growth opportunities. However, Azek shares are trading below the acquisition price, and Hardie shares are down 19% post-announcement.

Investors may face more risk than reward by entering the market now, as uncertainty in the U.S. housing market adds to concerns. While the deal is expected to close, there is a higher risk of it falling through than of a competing bid. This situation presents more risk for investors considering Azek shares following the acquisition news.



Read more at Yahoo Finance: Why Azek Stock Is Soaring Today