11:02 AM EDT, 03/24/2025 (MT Newswires) -- (Updates with recent stock movement in the headline and first paragraph.)

James Hardie Industries ( JHX ) shares were down nearly 19% while AZEK ( AZEK ) stock was up over 12% in recent Monday trading after James Hardie said it will acquire AZEK ( AZEK ).

James Hardie entered a deal to acquire AZEK ( AZEK ) for $8.75 billion in cash and stock, including the assumption of around $386 million in debt, the building components companies said Sunday.

Under the terms of the agreement, AZEK ( AZEK ) shareholders will receive $26.45 in cash and 1.034 ordinary shares of James Hardie for each share of AZEK ( AZEK ) they own, a total per share value of $56.88, a 26% premium to AZEK's ( AZEK ) average price over the 30 trading days prior to March 21, the companies said.

The transaction is also expected to be accretive to James Hardie's EPS in the first full fiscal year after the closing, the companies said.

The boards of both companies have each already unanimously approved the transaction, which is expected to close in H2.

On completion of the deal, James Hardie shareholders are to own about 74% of the combined company and AZEK ( AZEK ) the rest, the companies said. James Hardie Chief Executive Aaron Erter and Chief Financial Officer Rachel Wilson will retain their posts in the combined company, the companies said.

James Hardie also said it reaffirmed its fiscal year 2025 guidance, not including acquisition-related costs, while AZEK ( AZEK ) also reaffirmed its previous fiscal 2025 and Q2 outlook.

Price: 23.76, Change: -5.52, Percent Change: -18.85