Another massive deal in the building supply sector as James Hardie offers AZEK $8.75 billion

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MICHELLE CHAPMAN

Mon, Mar 24, 2025, 5:31 AM 2 min read

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Australian gathering products institution James Hardie Industries is buying the U.S. outdoor products shaper AZEK successful a cash-and-stock woody valued astatine astir $8.75 billion, including $386 cardinal successful debt.

It's the 2nd large acquisition successful the gathering supplies assemblage successful little than a week, with QXO Inc. announcing connected Thursday that it was buying Beacon Roofing Supply Inc. successful a woody worthy astir $11 billion, including debt.

The U.S. lodging marketplace has been successful a slump since 2022, erstwhile owe rates began to ascent from pandemic-era lows. Sales of antecedently occupied U.S. homes fell past twelvemonth to the lowest level successful astir 30 years.

The mean complaint connected a 30-year owe successful the U.S. roseate somewhat for the 2nd week successful a enactment to 6.67%,mortgage purchaser Freddie Mac said Thursday.

Raymond James expert Sam Darkatsh said successful a lawsuit enactment that the uncertainty successful the lodging marketplace makes Beacon's acquisition a affirmative for its shareholders. Beacon is based successful Herndon, Virginia.

Under the James Hardie deal, shareholders of The AZEK Company Inc. volition person $26.45 successful currency and 1.034 mean shares of James Hardie for each stock of AZEK banal that they own. AZEK is based successful Chicago.

James Hardie shareholders volition ain astir 74% of the combined company, with AZEK stockholders owning 26%.

The combined institution volition merchantability siding, exterior trim, decking, railing and pergolas, among different gathering goods.

“The user journeys for siding and decking often overlap and some companies person excelled astatine request instauration for the homeowner and innovative products and solutions for the contractor,” James Hardie CEO Aaron Erter said successful a statement.

James Hardie's mean shares volition database connected the New York Stock Exchange erstwhile the woody closes.

The boards of some companies person unanimously approved the transaction, which is presently targeted to adjacent successful the 2nd fractional of the year. The woody inactive needs AZEK shareholder approval.

AZEK's banal soared much than 23% earlier the opening doorbell Monday.

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