Gypsum industry news

Australia/US: The value of James Hardie’s Australia-listed shares fell by 15% following the announcement of a deal to buy AZEK. Financial analysts have expressed concern that the company is overpaying for more access to a slowing US housing market, according to Reuters. Analysts from Morgan Stanley said that the deal carried "a heavy premium and elevated multiple.” They added that they expected the market would be wary of synergy savings targets.

James Hardie agreed to buy AZEK for US$8.75bn, using a combination of cash and shares, on 24 March 2025. As part of the deal it will take on AZEK’s net debt of US$386m. AZEK shareholders will receive US$26.5 in cash and 1.034 ordinary shares of James Hardie for each AZEKL share they own. Upon completion of the transaction, James Hardie and AZEK shareholders are expected to own approximately 74% and 26%, respectively, of the combined company. It is hoped that the deal will create a “leading exterior and outdoor living building products growth platform.” The transaction is expected to close in the second half of 2025. It is subject to customary closing conditions, regulatory approvals and AZEK shareholder approval.

James Hardie manufactures fibre gypsum products in Europe and fibre cement products around the world. It is headquartered in Ireland, its management is based in the US and it is listed in both Australia and the US. AZEK makes exterior residential decking, siding, trim and moulding products. It is based in the US.