Fibre-cement maker James Hardie Industries (JHX.AX) announced it will acquire the U.S. outdoor building products manufacturer AZEK Company (AZEK.N) in a cash and stock transaction valued at $8.75 billion, including debt. This acquisition aims to enhance growth by expanding offerings for homeowners. AZEK shareholders will receive $26.45 in cash and 1.034 James Hardie shares per AZEK share, equating to $56.88 per share, representing a 37.4% premium over AZEK’s last closing price. The AZEK board has recommended approval of the offer. James Hardie’s Australian-listed shares fell 10.4% in early trading, reflecting share dilution. Post-acquisition, James Hardie and AZEK shareholders are expected to own approximately 74% and 26%, respectively, of the combined entity. CEO Aaron Erter stated that the deal is expected to significantly boost profitability and cash flow through synergies and cost savings. The transaction includes AZEK’s $386 million net debt. James Hardie anticipates achieving at least $350 million in additional earnings and $125 million in cost savings upon deal completion. The combined company’s shares will be listed on the New York Stock Exchange, retaining its Australian CDI listing. The company plans to fund the cash portion via debt financing and intends to repurchase up to $500 million in shares within 12 months after closing. The deal is expected to close in the second half of 2025, pending regulatory approvals. — news from CNBC
