Australia-based building materials manufacturer and marketer James Hardie reached a deal to acquire AZEK valued at $8.75 billion, including AZEK’s net debt of approximately $386 million.

Based in Chicago, AZEK is a manufacturer of outdoor living products, including decking, trim and pergolas. Established in 1983, the company employs approximately 2,000 team members and reported 2024 sales of $1.44 billion. AZEK operates additional manufacturing and recycling facilities in Ohio, Pennsylvania, Idaho, Georgia, Nevada, New Jersey, Michigan, Minnesota and Texas.

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Under the agreement, AZEK shareholders will receive $26.45 in cash and 1.0340 James Hardie shares, valued at $56.88 per AZEK share based on James Hardie’s closing stock price on March 21. Once the transaction has been completed, James Hardie and AZEK shareholders will own approximately 74% and 26% of the combined company, respectively. James Hardie’s shares will be listed on the NYSE, while its CHESS Depositary Interest (CDI) listing and Australian Securities Exchange (ASX) index inclusion will remain unchanged.

“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,” James Hardie CEO Aaron Erter said in a March 23 news 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.

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According to the release, the merger will create a leading growth platform in exterior and outdoor living products, combining complementary brands in siding, trim, decking, railing and pergolas to offer innovative material replacement solutions.

Following the transaction’s closure, Aaron Erter will become the CEO, and CFO Rachel Wilson will become the CFO of the combined company. Additionally, Howard Heckes, Gary Hendrickson and Jesse Singh will join James Hardie’s Board of Directors.