James Hardie Industries, an Australian company that is known for building products and solutions, is acquiring AZEK Company, a company in the United States specializing outdoor living products.
The cash and stock deal is worth $8.75 billion, including debt.
According to a report by CNBC, AZEK shareholders will receive $26.45 in cash, as well as 1.034 James Hardie shares for each AZEK share they have.
"This combination with AZEK is an extraordinary opportunity to accelerate our growth strategy, deliver enhanced and differentiated solutions to our customers and drive shareholder value," said James Hardie CEO Aaron Erter in a press release. "We are uniting two highly complementary companies with large material conversion opportunities and shared cultures centered around providing winning solutions to our customers and contractors."
"Together, we will be well positioned to drive sustained above market growth as a leader across attractive categories for the exterior of the home," Erter added.
"Together with James Hardie, we are delivering value to AZEK shareholders and providing them meaningful participation in the long-term secular and financial growth opportunities created by the combined company," said AZEK CEO Jesse Singh.
Singh explained, "We are bringing together two customer-centric organizations with a shared commitment to innovation and building a better, more sustainable and resilient future, and we are excited about the opportunities ahead."
James Hardie defends Acquisition
James Hardie's acquisition of AZEK has been with criticism as it ended up triggering a stock slump. The Australian company's shares closed down 14.5% in trading in Sydney, according to a report.
The company has come out to defend its acquisition as concerns have been raised over the US economy, insisting that James Hardie is "looking at this over the long term, and the long-term prospects of this are very, very strong."
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