James Hardie Acquires AZEK Company for $8.75 Billion

Australia’s fibre-cement producer James Hardie Industries, on Monday said 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 $8.75 billion, including AZEK’s net debt of approximately $386 million as of 31 December 2024.

Under the terms of the Agreement, AZEK shareholders will receive $26.45 in cash and 1.034 ordinary shares of James Hardie to be listed on the New York Stock Exchange (NYSE) for each share of AZEK common stock they own.

Upon completion of the transaction, James Hardie and AZEK shareholders are expected to own approximately 74% and 26%, respectively, of the combined company. James Hardie’s ordinary shares will be listed on the NYSE and it is expected to be eligible for broader index inclusion in the US in the future. James Hardie will maintain its current CDI listing and index inclusion on the ASX.

The combination of James Hardie and AZEK will create a leading exterior and outdoor living building products growth platform with efficient scale and profitability supported by leading brands driving material conversion.

By bringing together highly complementary products that span siding, exterior trim, decking, railing and pergolas, the combined company will offer a comprehensive and innovative material replacement solution to homeowners, customers and contractors.

James hardie CEO Aaron Erter said that the combination with AZEK is an extraordinary opportunity to accelerate their growth strategy, deliver enhanced and differentiated solutions to our customers and drive shareholder value.

According to Erter, they were uniting two highly complementary companies with large material conversion opportunities and shared cultures centred around providing winning solutions to their customers and contractors.

AZEK CEO Jesse Singh said that over AZEK’s more than 40-year history, they have made strategic investments in innovation, capabilities and talent, driving sustained above-market growth with their industry-leading brands, including TimberTech and AZEK Exteriors, and delivering an attractive margin profile with significant opportunities for expansion ahead.

“Together with James Hardie, we are delivering value to AZEK shareholders and providing them meaningful participation in the long-term secular and financial growth opportunities created by the combined company. We are bringing together two customer-centric organizations with a shared commitment to innovation and building a better, more sustainable and resilient future, and we are excited about the opportunities ahead,” Singh added.

Financial Benefits

The transaction brings 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.