By Adriano Marchese
Shares of James Hardie Industries fell sharply in premarket trading Monday after the company said it would acquire outdoor living products maker AZEK in an $8.75 billion deal.
Shares of James Hardie fell 11% ahead of the morning bell at $26.00. AZEK's stock jumped nearly 19% to $49.12 a share.
Late Sunday, James Hardie said AZEK shareholders will receive $26.45 in cash and 1.034 shares in the company for each AZEK share they own. The deal is worth roughly $56.88 a share, a 26% premium to AZEK's 30-day volume-weighted average price, James Hardie said.
James Hardie's shares have been under pressure so far in the year, down about 5% at Friday's close at $29.28. Shares are down 26% over the past 52 weeks.
AZEK shares have also been under pressure in 2025, down nearly 13% to close on Friday at C$41.39. The shares are down 16% to C$41.39.
The acquisition of AZEK, a maker of home decking, railing and pergolas, is expected to boost James Hardie's sales, and create a business focused on home exteriors that will benefit from efficiencies of scale.
James Hardie's chief executive, Aaron Erter, will serve as head of the combined company, and James Hardie Chief Financial Officer Rachel Wilson will be its CFO.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
March 24, 2025 06:35 ET (10:35 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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