In a blockbuster deal set to reshape the building materials sector, James Hardie Industries PLC has agreed to acquire The AZEK Company Inc. in a cash-and-stock transaction valued at $8.75 billion, including debt. The merger, facilitated by a powerhouse lineup of law firms, marks one of the most significant consolidations in the industry in recent years.
James Hardie, renowned for its fiber cement siding, will absorb AZEK, a leading manufacturer of decking and outdoor products, in a move aimed at expanding market reach and accelerating growth.
The Financial Breakdown: What Shareholders Get
According to Sunday’s announcement, AZEK shareholders will receive:
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$26.45 in cash per share
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1.0340 James Hardie ordinary shares for each AZEK share
Based on James Hardie’s March 21 closing price, this values each AZEK share at $56.88—a 26% premium over its 30-day volume-weighted average price.
Wall Street Reacts: A Tale of Two Stocks
Monday’s market response was mixed. AZEK’s stock soared over 18% in morning trading, climbing to nearly $49 per share. However, James Hardie’s shares tumbled more than 14%, reflecting some investor concerns over the financial implications of the deal.
Upon closing, James Hardie shareholders will own approximately 74% of the combined company, while AZEK shareholders will hold the remaining 26%.
