Fiber-cement maker James Hardie Industries (JHX) entered a merger agreement on March 23, 2025, to acquire artificial decking maker The AZEK Company Inc. (AZEK) in a cash and stock deal, valued at about $8.75 billion, including debt.
Under the agreement, AZEK shareholders will receive $26.45 in cash and 1.0340 ordinary shares of James Hardie for each share of AZEK common stock they own. The stock and cash consideration represents a total per-share value of $56.88, representing a 37.42% premium from the stock’s last close.
AZEK is a designer and manufacturer of low-maintenance, sustainable outdoor living and building products, including decking, railing, trim, and pergolas. Headquartered in Chicago, it serves residential, commercial, and industrial markets with innovative, eco-friendly solutions.
James Hardie is a producer of high-performance fiber cement and fiber gypsum building solutions, offering durable siding, trim, and interior products for residential and commercial construction across North America, Europe, and the Asia-Pacific region. Headquartered in Dublin, Ireland, the company operates globally.
James Hardie shareholders are expected to own about 74% of the combined company, while AZEK shareholders will hold the remaining 26%.
James Hardie stated that it expects to achieve at least $350 million in additional earnings upon completion of the deal, expected in the second half of 2025, along with $125 million in cost savings.
The combined company’s shares will be listed on the New York Stock Exchange, while its Australian CHESS Depositary Interest (CDI) listing will remain in place.
This deal comes a week after Beacon Roofing Supply, Inc. (BECN) accepted a $11 billion offer from Brad Jacob’s QXO, Inc. (QXO), forming a trend in the building products sector.
James Hardie plans to fund the cash portion of the transaction through debt financing and has secured a fully committed bridge financing facility led by Bank of America and Jefferies. It also plans to repurchase up to $500 million of its shares within 12 months following the deal’s expected closing.
James Hardie CEO Aaron Erter will serve as Chief Executive Officer, and CFO Rachel Wilson will remain Chief Financial Officer of the combined company. Upon completion of the transaction, AZEK’s Director Howard Heckes, Chair Gary Hendrickson, and CEO Jesse Singh will join James Hardie’s Board of Directors.
AZEK was advised by Goldman Sachs on financial matters, with legal counsel from Wachtell, Lipton, Rosen & Katz. James Hardie received financial guidance from Jefferies and BofA Securities, while Skadden, Arps, Slate, Meagher & Flom, Arthur Cox, and Gilbert + Tobin provided legal expertise.
James Hardie is paying 4.72 times the sales, and 20.47 times the EBITDA of The AZEK Company.
For a more detailed insight into this M&A transaction, please refer to the Deal Metrics page here:
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Editor’s Note: Baranjot Kaur contributed to this article