AZEK jumps on merger deal with James Hardie

James Hardie Industries

24/03/2025 11:15

** Shares of outdoor home-decking maker AZEK AZEK.N up 19% premarket to $49.25, over one-month high, on M&A news

** Fiber-cement maker James Hardie Industries JHX.AX said it will acquire AZEK in cash-and-stock deal valued at $8.8 bln

** Shareholders of Chicago-based AZEK to receive $26.45 in cash and 1.0340 James Hardie shares for each AZEK share they own, and combined co to be listed on the New York Stock Exchange

** James Hardie was founded in Australia but is now headquartered in Ireland. Its management team is based in Chicago

** ASX-listed shares of James Hardie fell ~15% on Mon

** Total deal/sh of $56.88 represents ~37% premium to AZEK's last close

** AZEK shares, which have $6 bln market cap, down 15% YTD through Fri. Stock notched record-high close of $54.76 on Dec 11

** Co went public in Jun 2020 IPO priced at $23

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))