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

Industries ( JHX ) said it would acquire U.S outdoor building

products maker AZEK Company ( AZEK ) in a cash and stock deal

worth $8.75 billion including debt, looking to boost growth with

new offerings to homeowners.

AZEK ( AZEK ) shareholders will receive $26.45 in cash and 1.034

James Hardie shares for each AZEK ( AZEK ) share, bringing the total per

share value to $56.88 per share, a 37.4% premium to AZEK's ( AZEK ) last

close on Friday.

AZEK's ( AZEK ) board of directors has recommended accepting the

offer, Hardie and AZEK ( AZEK ) said in a joint statement. AZEK ( AZEK )

manufactures wood decking, pergolas and outdoor living products.

James Hardie's Australian-listed shares dropped 10.4% in

early trade on Monday, while the S&P/ASX200 was off

0.2%, reflecting the share dilution.

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.

The $8.75 billion price tag includes AZEK's ( AZEK ) $386 million

worth of net debt, James Hardie said.

The company said it expected to achieve at least $350

million worth of additional earnings once the deal was complete.

It added it expected there would be $125 million of cost savings

in the deal.

The combined companies shares will be listed on the New York

Stock Exchange with its Australian chess depositary interest

(CDI) listing remaining in place, it said in a statement.

James Hardie was founded in Australia but is now

headquartered in Ireland. Its management team is based in

Chicago.

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.

The deal is anticipated to close in the second half of

calendar year 2025, the firm said, subject to regulatory

approvals.