MW Siding and decking coming together in $8.8 billion cash-and-stock deal
By Steve Goldstein
Australian-listed James Hardie is buying The Azek Co.
An $8.8 billion deal was struck to combine two companies in the building materials space that stand to profit from home renovation.
Australian-listed James Hardie said it is buying The Azek Co. for $8.75 billion in cash, stock and assumed debt. That values each Azek share at $56.88 each, a 26% premium to its volume weighted-average price over the past 30 days. James Hardie is expected to be eligible for U.S. index inclusion after the deal completes
James Hardie shares AU:JHX $(JHX)$ plunged 15% in Sydney trade. Azek shares $(AZEK)$ jumped 19% in premarket trade to $49.11.
The companies said the merger will create a leading exterior and outdoor living building products growth platform. "The consumer journeys for siding and decking often overlap and both companies have excelled at demand creation for the homeowner and innovative products and solutions for the contractor," said James Hardie CEO Aaron Erter in a statement.
The deal will lift James Hardie's earnings per share in the first full year after closing and will deliver a return on invested capital above its cost of capital within the medium term, the companies said.
-Steve Goldstein
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March 24, 2025 04:31 ET (08:31 GMT)
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