AZEK Shareholders OK Merger with James Hardie Industries

The AZEK Company Inc, listed on the New York Stock Exchange (NYSE), on Monday said that its stockholders have voted to approve all proposals related to AZEK’s proposed transaction with James Hardie Industries plc (James Hardie) at its special meeting of stockholders on 27 June 2025.

On completion of the transaction, which is expected to close on July 1 subject to the satisfaction or waiver of the closing conditions set forth in the merger agreement, James Hardie Industries and AZEK shareholders will own approximately 74% and 26% respectively of the combined company, AZEK, the US outdoor decking and railings company, said.

Under the terms of the merger agreement, and subject to the completion of the transaction, AZEK stockholders will receive $26.45 in cash and 1.0340 ordinary shares of James Hardie to be listed on the NYSE for each share of AZEK common stock owned, AZEK said in a regulatory filing with Australian Securities Exchange (ASX).

It may be recalled that Australia’s fibre-cement producer James Hardie Industries, has announced in March this year that it will acquire the US-based The AZEK Company, a leading manufacturer of high-performance, low-maintenance and environmentally sustainable outdoor living products for $9.15 billion, including AZEK’s net debt of approximately $386 million as of 31 December 2024.

Economic Benefits

The transaction is expected to bring together two high-growth companies with complementary product offerings across major categories on the exterior of the home. James Hardie’s and AZEK’s brands benefit from efficiencies of scale and innovative products and, when combined, will create a compelling proposition across the customer value chain.

The addition of AZEK, which has averaged more than 15% net sales growth in its residential business segment over the last seven years, will materially enhance James Hardie’s top-line growth trajectory. As a result of the combination, over the next five years, the annual growth rates of James Hardie’s net sales and adjusted EBITDA are expected to accelerate by more than 250 basis points and 300 basis points, respectively.

The combined company will increase its total addressable market in North America to $23 billion and have a meaningful opportunity to drive accelerated material conversion across its combined product offering.

Meanwhile, the Australian shares climbed in early trading as building products maker after the AZEK Company, cleared a crucial shareholder vote.