Australian building products company James Hardie Industries is acquiring the U.S. outdoor products maker AZEK in a cash-and-stock deal valued at approximately $8.75 billion, which includes $386 million in debt.
This acquisition marks the second major deal in the building supplies sector within a week, with QXO Inc. recently announcing the purchase of Beacon Roofing Supply Inc. for about $11 billion, including debt.
Driving the news: The U.S. housing market has been experiencing a downturn since 2022 due to rising mortgage rates, leading to a decline in home sales, reaching the lowest level in nearly 30 years.
Go deeper: As part of the James Hardie-AZEK agreement, AZEK shareholders will receive $26.45 in cash and 1.034 ordinary shares of James Hardie for every share of AZEK stock they own, with AZEK based in Chicago.
- Upon completion of the deal, James Hardie shareholders will hold a 74% stake in the combined company, while AZEK stockholders will own the remaining 26%.
- The merged entity will focus on selling siding, exterior trim, decking, railing, and pergolas, among other building supplies, with both companies known for consumer demand creation and innovative products for contractors.
What they’re saying: “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.
