Shares of Azek surged 13.5% on Monday after the US artificial decking maker agreed to be acquired by Australia’s James Hardie Industries in an $8.75 billion deal.
The combined firm will trade on the NYSE, with James Hardie financing the cash portion through debt.
The merger provides Azek shareholders with a mix of immediate cash value and future exposure to the combined company, which is projected to generate $350 million in additional earnings and $125 million in cost savings.
Under the terms, Azek investors will receive $26.45 in cash and 1.034 James Hardie shares for each Azek share, valuing the offer at $56.88 per share—a 37.4% premium to Azek's last close on Friday.
The company’s board has recommended the deal, which is expected to close in the second half of 2025.