James Hardie to Acquire Azek in $8.75B Deal to Boost North American Expansion

James Hardie Industries (NYSE:JHX, ASX:JHX), the world’s largest fiber cement producer, has announced a definitive agreement to acquire U.S.-based Azek Company Inc. (NYSE:AZEK) in a deal valued at $8.75 billion. This strategic move aims to significantly strengthen James Hardie’s footprint in North America.

Under the terms, Azek shareholders will receive $26.45 in cash and 1.0340 James Hardie shares per Azek share, totaling a value of $56.88 per share—representing a 37% premium to Azek’s last closing price. Post-acquisition, James Hardie shareholders will own approximately 74% of the combined entity, while Azek investors will hold the remaining 26%.

The acquisition aligns with James Hardie’s growth strategy by integrating Azek’s sustainable exterior building products—such as TimberTech decking and railing—with its core fiber cement offerings. The combined portfolio will position the company as a dominant player in exterior home improvement products. James Hardie projects at least $350 million in annual synergies and accelerated revenue growth from the deal.

CEO Aaron Erter stated the combined business will be poised to drive “sustained above market growth” across attractive housing segments. Despite the announcement, James Hardie shares dropped 11.3% to A$41.51 in early ASX trading, marking their lowest level since November 2023.

Upon closing—expected in the second half of 2025 pending regulatory approval—James Hardie will retain its CHESS Depositary Interest (CDI) listing on the ASX and begin listing its ordinary shares on the NYSE.

Azek, based in Chicago, is known for its eco-friendly building materials and strong presence in the U.S. market. This acquisition marks a major milestone in James Hardie’s ongoing transformation and growth within the sustainable construction space.