Sources: James Hardie Industries Plc, Sydney; CP staff
One of the top cement consumers beyond mainline concrete production, thanks to its namesake Plank and Panel siding series, has entered an agreement to acquire Chicago-based AZEK Company Inc., a key player in PVC or aluminum residential building enclosure and outdoor living elements. James Hardie’s $8.75 billion deal for AZEK consolidates highly complementary siding, exterior trim, decking, railing and pergola products. In turn, they will offer homeowners and contractors a comprehensive and innovative exterior material solution.
“Together, we will be well positioned to drive sustained above market growth as a leader across attractive categories for the home,” says James Hardie CEO Aaron Erter. “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. Additionally, given the substantial opportunity to drive synergies and James Hardie and AZEK’s shared discipline around operational efficiency, we expect to significantly enhance the combined company’s profitability and cash flow.”
“Over our more than 40-year history, we have made strategic investments in innovation, capabilities and talent, driving sustained, above-market growth with industry-leading brands, including TimberTech and AZEK Exteriors,” adds AZEK CEO Jesse Singh. “We are bringing together two customer-centric organizations with a shared commitment to innovation and building a better, more sustainable and resilient future.”
AZEK shareholders are set to receive $26.45 in cash and 1.0340 ordinary shares of James Hardie to be listed on the New York Stock Exchange for each share of AZEK common stock they own. Upon transaction closing, James Hardie and AZEK shareholders are expected to hold approximately 74 percent and 26 percent, respectively, of the combined company.
Related articles
Oldcastle APG adds CertainTeed outdoor living product lines
Oldcastle APG: Home to Barrette Outdoor Living
System Pavers: Homeowners drive outdoor living to record dynamism