The stock value of The AZEK Company Inc. (NYSE: AZEK) increased significantly, rising 13.69% to $47.06 as of the most recent market check. Following exciting news about the company’s acquisition by James Hardie Industries, there has been a spike.
Specifics of the Purchase Agreement
AZEK and James Hardie Industries, a world leader in high-performance, low-maintenance construction materials, have entered into a definitive agreement. AZEK’s net debt of about $386 million as of December 31, 2024, will be included in the $8.75 billion takeover agreement.
The deal states that for every AZEK share, stockholders would get $26.45 in cash and 1.0340 common shares of James Hardie. This purchase reflects a total per-share value of $56.88, which is 26% more than AZEK’s volume-weighted average price (VWAP) during the preceding 30 trading days, based on James Hardie’s closing stock price of AU$46.80 per share on March 21, 2025.
Future Prospects and Strategic Synergies
Once the transaction is complete, the combined company will be majority-owned by James Hardie, holding approximately 74%, while AZEK shareholders will own around 26%. By utilizing effective size and robust profitability, the merger will establish a leading platform for external and outdoor lifestyle construction materials.
James Hardie’s knowledge of siding, trim, decking, and other materials, along with AZEK’s top brands, TimberTech and AZEK Exteriors, will offer a complete material replacement option for clients, contractors, and homeowners alike.
Changes in Leadership and Upcoming Development
The newly established business will be run by Aaron Erter, the CEO of James Hardie, with Rachel Wilson, the CFO, playing a significant role as well. Howard Heckes, Gary Hendrickson, and Jesse Singh, three significant AZEK executives, will also join the James Hardie Board of Directors.
The combination is expected to result in significant operational savings and synergies, positioning the combined company for long-term financial success and global development.