In a bold move to reshape the building products landscape, James Hardie Industries (ASX/NYSE: JHX) has struck a US$8.75 billion deal to acquire US-based AZEK Company Inc. (NYSE: AZEK), forming a formidable exterior and outdoor living growth platform.
The deal combines two market leaders in low-maintenance, high-performance building products. With strong brand recognition, complementary offerings, and a shared customer-first ethos, the merged entity will be a powerful force in the global building materials space, offering everything from siding and trim to decking, railing, and pergolas.
What the Deal Looks Like
AZEK shareholders will receive $26.45 in cash and 1.0340 James Hardie shares for each AZEK share, translating to $56.88 per share—a 26% premium to AZEK’s recent 30-day trading average. Post-deal, James Hardie shareholders will own 74% of the combined company, with AZEK shareholders holding the remaining 26%.
The acquisition will be funded through a mix of stock and new debt, with a fully committed bridge financing facility in place, led by Bank of America and Jefferies.
Strategic Upside and Synergies
James Hardie CEO Aaron Erter said the deal is a natural fit, uniting two innovative, sustainability-driven companies that serve overlapping customer bases. The combination is expected to:
- Accelerate revenue growth, with projected sales and EBITDA growth rates rising by 250–300 basis points.
- Unlock at least $350 million in synergies, through both cost savings ($125 million) and commercial opportunities ($500 million).
- Expand James Hardie’s North American addressable market to $23 billion.
- Deliver a combined adjusted EBITDA margin of 31%, with over $1 billion in annual free cash flow once synergies are realised.
James Hardie also confirmed the deal will be cash EPS accretive in the first full year post-closing and targets a return on invested capital above its cost of capital within the medium term.
Governance and Timeline
Aaron Erter will remain CEO of the combined business, and James Hardie CFO Rachel Wilson will retain her role. Notably, AZEK CEO Jesse Singh and two AZEK directors will join James Hardie’s board.
The deal, which has been unanimously approved by both boards, is expected to close in the second half of 2025, subject to regulatory and AZEK shareholder approval. No James Hardie shareholder vote is required.
