AZEK: Shares Surge Amid James Hardie Acquisition News
Deal News | Mar 24, 2025 | EIN
In a significant move in the building supply sector, Australian company James Hardie Industries has announced its plan to acquire AZEK Company Inc. for $8.75 billion. This announcement has led to a sharp increase in AZEK's stock price, which surged over 13% in early trading. The acquisition, yet to be approved by AZEK shareholders, aims to create a major player in the building products arena, combining James Hardie's expertise with AZEK's product offerings in outdoor living. The deal will see James Hardie shareholders owning 74% of the merged entity, with AZEK stockholders taking the remaining 26%. Investors are optimistic about the merger's potential, driven by AZEK's strong revenue growth and the strategic market expansion offered by combining the two companies. However, potential risks include operational integration challenges and the need for shareholder approval.
Sectors
- Building Products
- Mergers and Acquisitions
Geography
- Australia – This geography is relevant as James Hardie Industries, the acquiring company, is based in Australia.
- United States – Relevant since AZEK Company Inc., the target of the acquisition, is a U.S.-based company.
Industry
- Building Products – This sector is directly involved due to the nature of both James Hardie and AZEK's business operations in manufacturing building supplies and products for residential markets.
- Mergers and Acquisitions – The article discusses a significant acquisition deal, highlighting its financial and strategic implications.
Financials
- $8.75 billion – The acquisition price that James Hardie Industries is willing to pay for AZEK Company Inc.
- 13% – The increase in AZEK's stock price following the announcement of the acquisition.
- 13% YoY – AZEK's year-over-year revenue growth in the latest quarter reported in Q4 2023.
- $47.11 per share – The price per share at which James Hardie values AZEK in the acquisition deal.
- 74% – The percentage of the combined entity that will be owned by James Hardie shareholders post-acquisition.
- 26% – The percentage of the combined entity that will be owned by AZEK shareholders post-acquisition.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| James Hardie Industries | Bidding Company/Buyer | Company | An Australian company specializing in the manufacture of building products such as siding and exterior trim. |
| AZEK Company Inc. | Target Company | Company | A U.S. company known for manufacturing outdoor living products, including decking, railing, and trim. |
| AZEK Shareholders | Voting Entity | People | The group of shareholders who need to approve the acquisition deal for it to proceed. |