James Hardie to sell Fermacell for $981 million, looks to exit Europe (updated)

James Hardie Industries

20/08/2026 22:04

James Hardie intends to exit European fibre cement business
Co to use around $600 mln from Fermacell deal to repay debt
Co unveils $250 mln share repurchase programme
Recasts, adds analysts' comments in paragraphs 7-8 and shares in 10
By Shivangi  Lahiri
Aug 21 (Reuters) - James Hardie JHA1.F, JHX.AX said it will sell its European walling and flooring business Fermacell to Swiss building materials supplier Holcim HOLN.S for €840 million ($980.78 million) and plans to close its European fibre cement business.
The sale marks a retreat from Europe by the Dublin-headquartered fibre cement maker as it seeks to sharpen its focus on North America after investor criticism of its $8.75 billion purchase of U.S. building products group AZEK last year.
"The strategic divestiture of our European operations and the intended closure of the European fibre cement business will enable us to focus on our highest growth and return opportunities," CEO Aaron Erter said on Thursday.
James Hardie faced heavy shareholder backlash over the AZEK deal struck at a 37% premium, triggering a board shake-up and erasing billions of dollars in market value.
Investors had also questioned the execution of the AZEK transaction, funded by debt and a major share issuance, during a period of volatility in the U.S. housing market.
James Hardie said on Thursday it intends to use around $600 million from the Fermacell sale proceeds to repay debt. It also unveiled a $250 million share repurchase programme.
"Past strategies for growing the European business have fallen by the wayside, and unless the management had a focused Europe strategy there doesn't seem much point in holding onto it," said Esther Holloway, an equity analyst at Morningstar.
Analysts at Citi and RBC Capital Markets cited the deal as a pathway for James Hardie to focus on AZEK and its core markets, including North America.
Separately, Holcim said it expects the deal, likely to close in the first half of 2027, to be earnings-accretive from the first year.
James Hardie's Australia-listed shares rose as much as 1.9% to A$43.61 by 0013 GMT.    

($1 = 0.8565 euros)

 (Reporting by Shivangi Lahiri in Bengaluru, Byron Kaye in Sydney; Editing by Shinjini Ganguli and Subhranshu Sahu)
 ((Shivangi.Lahiri@thomsonreuters.com;))