(Reuters) – Owens Corning said on Friday it will buy door maker Masonite International for $3.9 billion in an all-cash deal, as it looks to beef up its home-building portfolio and expand its reach.
Owens will acquire all outstanding shares of Masonite for $133 per share, which is a nearly 38.3% premium to Masonite’s last closing price. Shares of Masonite surged 34.2% before the bell.
“Masonite is a market leader that complements our existing residential interior and exterior product offering,” Brian Chambers, CEO of Owens Corning, said.
Masonite operates 64 manufacturing and distribution facilities, primarily in North America, while Toledo, Ohio-based Owens Corning operates in 31 countries.
The deal is expected to close in mid-2024. After the deal, Masonite will operate as a reportable segment, while maintaining its brand and keeping a presence in Tampa, Florida.
Masonite and peer PGT Innovations had reached a $3 billion deal in December, which later PGT ditched to accept a higher offer from Miter Brands.
Morgan Stanley is the lead financial advisor to Owens Corning and Goldman Sachs advised Masonite.
Topics Mergers & Acquisitions
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