Owens Corning to acquire Masonite in $3.9 billion deal By Investing.com

© Reuters. Owens Corning (OC) to acquire Masonite (DOOR) in $3.9 billion deal

Building materials giant Owens Corning (NYSE:) has agreed a deal to acquire door manufacturer Masonite (DOOR) for $3.9 billion in cash. This represents a 38% premium over Masonite’s closing share price on February 8th.

Under the terms of the deal, Owens Corning will pay $133 per share for each outstanding Masonite share. This translates to a purchase multiple of 8.6 times Masonite’s expected 2023 adjusted EBITDA, or 6.8 times when factoring in anticipated synergies of $125 million.

The acquisition is expected to bolster Owens Corning’s position in the building and construction materials market, giving them a wider range of products and a stronger foothold in both interior and exterior solutions.

The deal is expected to close in mid-2024.

“We are excited by this opportunity to add a scalable new growth platform for our company,” said Brian Chambers, chief executive officer of Owens Corning. “Masonite is a market leader that complements our existing residential interior and exterior product offering and has consistently demonstrated top-line growth and margin expansion.”

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