James Hardie Industries Plc (ASX:JHX) is acquiring New York-listed AZEK Company Inc – a top manufacturer of outdoor living products – in a merger deal worth $14 billion.

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The companies have entered a definitive agreement in which James Hardie will take on AZEK with the total transaction value – in both cash and shares – also encompassing AZEK’s net debt, which was $386 million at the end of 2024.

The terms of the merger will see James Hardie shareholders hold around 74% of the resulting entity; AZEK shareholders will own 26% when the deal goes through.

The latter will receive $26.45 in cash plus 1.034 ordinary James Hardie shares to be listed on the NYSE for each share of AZEK common stock they own.

It’s anticipated the combination of the two companies will facilitate a growth platform built around exterior and outdoor living building products, with material replacement as a major factor, with this underpinned by AZEK’s reputation for low-maintenance and environmentally sustainable products.

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The merger is also expected to produce, at minimum, $350 million additional annual EBITDA.

James Hardie has been trading at $46.80 this morning.

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