A massive deal is brewing in the world of building materials. James Hardie, an Australian company known for its fiber-cement products, is set to buy AZEK, a maker of outdoor products. This acquisition, valued at $8. 75 billion, could be the biggest deal to come out of Australia in 2025.

The deal is a mix of cash and stock. AZEK shareholders will get $26. 45 in cash and 1. 0340 shares of James Hardie for each share they own. This works out to a total value of $56. 88 per share, which is a 37. 4% increase from AZEK's share price on the last trading day.

Once the deal is done, James Hardie shareholders will own about 74% of the new company, while AZEK shareholders will own the remaining 26%. The goal is to combine the strengths of both companies to boost profits and cash flow. Aaron Erter, the CEO of James Hardie, is confident that this merger will lead to significant gains.

James Hardie's shares will start trading on the New York Stock Exchange after the deal closes, but the company will keep its listing on the Australian stock exchange. To fund the cash part of the deal, James Hardie has secured a bridge financing facility. The company also plans to buy back up to $500 million of its own shares in the year after the deal closes.

Both companies' boards have given the green light to the deal. It is expected to wrap up in the second half of 2025, but it still needs to get the okay from regulators. This merger could change the game in the building materials industry, but only time will tell if it lives up to the hype.

Aussie Giant James Hardie Makes a Big Move

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