March 24 (Reuters) - Fibre-cement maker James Hardie

Industries ( JHX ) said on Monday it will acquire outdoor

products manufacturer AZEK Company ( AZEK ) in a cash and stock

transaction valued at $8.75 billion, in what could potentially

be Australia's largest deal to date in 2025.

Under the deal, AZEK ( AZEK ) shareholders are set to receive $26.45

in cash and 1.0340 ordinary shares of James Hardie to be listed

on the New York Stock Exchange for each AZEK ( AZEK ) share, bringing the

total per share value to $56.88 per share, representing a 37.4%

premium to AZEK's ( AZEK ) last close on Friday.

Upon completion of the transaction, James Hardie and AZEK ( AZEK )

shareholders are expected to own around 74% and 26%,

respectively, of the combined company.

"Given the substantial opportunity to drive synergies and

James Hardie and AZEK's ( AZEK ) shared discipline around operational

efficiency, we expect to significantly enhance the combined

company's profitability and cash flow," said Aaron Erter, James

Hardie's chief executive officer.

Upon close, James Hardie's ordinary shares would be listed

on the New York Stock Exchange, while maintaining its current

chess depositary interest (CDI) listing and index inclusion on

the Australian stock exchange, it said in a statement.

The firm intends to fund the cash portion of the transaction

through debt financing and has secured a fully committed bridge

financing facility, it said without disclosing any further

details.

James Hardie also plans to execute up to $500 million of

share repurchases in the 12 months after the closing of the

transaction, it added.

Both boards of directors have unanimously approved the

transaction, with the deal anticipated to close in the second

half of calendar year 2025, the firm said, subject to regulatory

approvals.