Deal Reportedly Worth $8.75 Billion Brings AZEK Into the Fold
James Hardie is expanding its already substantial building materials footprint with the acquisition of AZEK. For those of you who are here for the numbers, it’s a deal worth $8.75 billion that includes cash, stock, and roughly $386 million in AZEK debt.
If you’re an AZEK shareholder, you’ll receive $26.45 in cash and 1.0340 ordinary shares of James Hardie for every share of AZEK you own.
Both companies are publicly traded. AZEK is currently on the New York Stock Exchange (NYSE: AZEK). James Hardie is listed on the Australian Securities Exchange (ASX: JHX). However, James Hardie common shares will be on the NYSE once the deal closes. That is expected to come in the second half of 2025.
Why it Matters
I’ll leave the financial analysis to the financial publications. What we’re more concerned about is the effect on those of you using James Hardie and/or AZEK building products.
James Hardie is most well-known for its various fiber-cement products like siding, trim, and backer board. In fact, I have Hardie Trim and Hardie Shingle products on my house.
AZEK has products in the outdoor living space sector. You might be familiar with its TimberTech composite decking or StruXure pergolas and cabanas. They also have some crossover products in the trim and siding sector, though AZEK Exterior is more known for PVC products rather than fiber cement.
For the most part, this appears mostly favorable for builders, though the effects are unlikely to change your life immediately. Having both brands under one roof has the potential to bring a wider portfolio of products to your current James Hardie distributor. With competencies across multiple disciplines and materials, there’s also the possibility of information sharing that can drive even more innovation in new building products.
According to James Hardie’s press release, there are five key benefits of the deal:
- Creates a leading exterior and outdoor living growth platform
- Accelerates material conversion-led growth
- Provides customers a comprehensive solution of sustainable exterior and outdoor living brands
- Delivers best-in-class financial profile
- Unlocks significant value through cost and commercial synergies
Notice that the main drivers here are financial for business growth. That’s not a surprise since publicly traded companies need to reassure their stockholders during times of transition. However, the growth they’re looking for is only achievable if their customers buy it, so there should be motivation to continue developing compelling products and keep price increases in check.
For now, it’s business as usual for those of us buying materials from both companies.
