James Hardie to Acquire AZEK Despite Market Concerns

James Hardie Industries has announced a $8.75 billion acquisition of AZEK Company, a producer of outdoor living products, in a deal that involves both cash and stock. AZEK shareholders will receive $26.45 in cash and 1.0340 shares of James Hardie for each AZEK share, valuing the deal at $56.88 per AZEK share, a 37% premium to its last closing price. Despite the strategic growth opportunity in the U.S. housing market, James Hardie's shares fell sharply, reflecting investor concerns over the economic risks tied to the acquisition. The combined company, which will focus on home exteriors, will be listed on the New York Stock Exchange and aims to benefit from efficiencies of scale. Aaron Erter, CEO of James Hardie, highlighted the long-term growth prospects and complementary nature of the companies' product lines, emphasizing the significant market potential in North America. The transaction is expected to close in the second half of 2025, pending regulatory approval.