Strategic mergers can redefine industries by combining strengths and expanding market reach. James Hardie’s $8.75 billion acquisition of AZEK, as reported by Business Wire, creates a powerhouse in exterior and outdoor building products. By uniting complementary offerings like siding, decking, and trim, the combined company is well-positioned to accelerate growth and profitability. With shared values of innovation and sustainability, this merger will deliver enhanced solutions for homeowners and contractors while driving shareholder value. This transformative partnership highlights the importance of collaboration in achieving long-term industry leadership.
Home Improvement
| James Hardie Agrees to Buy AZEK for $8.75 Billion
James Hardie Agrees to Buy AZEK for $8.75 Billion
Published March 23, 2025, 9:50 AM EST
James Hardie Industries plc has completed its $8.75 billion acquisition of The AZEK Company Inc., forming a leading provider of exterior home and outdoor living solutions. This strategic merger combines James Hardie’s high-performance siding and trim products with AZEK’s TimberTech® decking and AZEK® Exteriors, creating a comprehensive portfolio for homeowners, customers, and contractors. The transaction is expected to generate at least $350 million in annual adjusted EBITDA from synergies and accelerate James Hardie’s revenue and earnings growth. The combined company will have a total addressable market in North America of $23 billion and will be listed on both the New York Stock Exchange and the Australian Securities Exchange.
March 23, 2025
HG Homeclub, the premier resource for home improvement industry intelligence, reports that James Hardie Industries plc, a global leader in high-performance, low-maintenance building products, has entered into a definitive agreement to acquire The AZEK Company Inc., a leading manufacturer of sustainable outdoor living products, for a total transaction value of $8.75 billion. This strategic merger combines two industry leaders to create a powerhouse in the exterior home and outdoor living solutions sector.
Strategic Merger to Accelerate Growth and Innovation
Under the terms of 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, totaling $56.88 per share. This represents a 26% premium over AZEK’s 30-day volume-weighted average price prior to the announcement. Upon completion, James Hardie and AZEK shareholders are expected to own approximately 74% and 26% of the combined company, respectively.
The merger is expected to generate at least $350 million in additional annual adjusted EBITDA from synergies when fully realized. The combined entity will have an anticipated total addressable market in North America of $23 billion, positioning James Hardie as a leader in the exterior building products industry.
Complementary Product Portfolios and Shared Values
The merger unites James Hardie’s renowned Hardie® siding and trim products with AZEK’s TimberTech® decking, AZEK® Exteriors, and other outdoor living solutions. This complementary product portfolio enables the combined company to offer a comprehensive range of materials for homeowners, customers, and contractors.
Both companies share a commitment to innovation, sustainability, and customer satisfaction. The merger enhances their ability to deliver high-quality, low-maintenance building products that meet the evolving needs of the market.
Leadership and Market Expansion
Following the completion of the transaction, Aaron Erter will continue as CEO of the combined company, with Rachel Wilson serving as CFO. Key leadership appointments include Jon Skelly as President – AZEK Residential, Sam Toole as Chief Marketing Officer, AZEK® brands, and Chris Russell as VP, Global Strategy and Corporate Development.
The merger also facilitates James Hardie’s listing on the New York Stock Exchange, expanding its presence in the U.S. market and enhancing its visibility to a broader investor base.
About James Hardie Industries plc
James Hardie Industries plc is a global leader in high-performance, low-maintenance building products. The company offers a comprehensive range of products, including siding, trim, decking, railing, and pergolas, through its portfolio of brands: Hardie®, TimberTech®, AZEK® Exteriors, Versatex®, StruXure®, Ultralox®, and Intex®. James Hardie is committed to providing innovative solutions that enhance the beauty, durability, and sustainability of homes and buildings worldwide.