Australia’s James Hardie to acquire US-based AZEK | Australian Markets

Fibre-cement maker James Hardie Industries mentioned on Monday it might acquire US-based outside merchandise producer AZEK in a money and stock transaction valued at $US8.75 billion ($13.9 billion), in what might be Australia’s largest deal to date in 2025.

Under the deal, AZEK shareholders are set to obtain $26.45 in money and 1.0340 peculiar shares of James Hardie to be listed on the New York Stock Exchange for every AZEK share, bringing the full per share worth to $56.88 per share, representing a 37.4 per cent premium to AZEK’s final close on Friday.

Upon completion of the transaction, James Hardie and AZEK shareholders are anticipated to own round 74 per cent and 26 per cent, respectively, of the mixed company.

“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,” mentioned Aaron Erter, James Hardie’s chief govt.

Upon close, James Hardie’s peculiar shares can be listed on the New York Stock Exchange, whereas sustaining its present chess depositary curiosity (CDI) itemizing and index inclusion on the Australian Stock Exchange, it mentioned in a assertion.

The firm intends to fund the money portion of the transaction by means of debt financing and has secured a totally dedicated bridge financing facility, it mentioned with out disclosing any additional particulars.

James Hardie additionally plans to execute up to $500 million of share repurchases within the 12 months after the closing of the transaction, it added.

Both boards of administrators have unanimously permitted the transaction, with the deal anticipated to close within the second half of the calendar 12 months 2025, the firm mentioned, subject to regulatory approvals.