Photo By Masonite
TOLEDO, Ohio & TAMPA, Fla — Masonite International, which less than a month ago was on the verge of making a major acquisition, has itself been acquired by Owens Corning in a $3.9 billion deal.
Under the deal announced today, Feb. 9, Owens Corning will acquire all outstanding shares of Masonite for $133 per share in cash. The offer represents an approximate 38% premium to Masonite’s closing share price on February 8, 2024, and an approximate 46% premium to Masonite’s 20-day volume-weighted average price.
In a statement, Owens Corning said the addition of Masonite’s market-leading doors business creates a “new growth platform” for Owens Corning, strengthening the company’s position in residential building materials and extending its offering of highly valued products and brands.
The company said that it planned to leverage Owens Corning’s commercial capabilities and go-to-market model serving contractors, builders, and distributors, with Masonite’ “track record of innovation, brand quality, and category excellence to further grow in the doors market.”
The Boards of Directors of both companies have unanimously approved the transaction. The transaction is expected to close mid-2024, subject to Masonite shareholder approval, regulatory approvals, and other customary closing conditions. The transaction will be financed by cash on hand and committed debt financing of $3 billion provided by Morgan Stanley Senior Funding, Inc.
Following the closing, Masonite will operate as a reportable segment and will maintain Masonite’s brands and a presence in Tampa, Florida.
Masonite, in early January, was on the brink of a $3 billion acquisition of PGT Innovations, Inc., when the announced deal was usurped by a better offer from Miter Brands. That deal was valued at $3.1 billion.
Founded in 1925, Masonite (FDMC300 #8, $2.9 billion) designs, manufactures, and markets doors and door systems, with a vertically integrated manufacturing model serving both repair and remodel and new construction demand.
Masonite operates 64 manufacturing and distribution facilities, primarily in North America, and has over 10,000 employees globally.
Brian Chambers, board chair and CEO of Owens Corning, said that the company was excited by the opportunity to add a scalable new growth platform for our company.
“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” said Chambers. “The combination of our commercial, operational, and innovation capabilities allows us to accelerate our long-term enterprise growth strategy with a clear line of sight to meaningful synergies and increased cash flow generation. We look forward to welcoming the talented Masonite team to Owens Corning and working with them to deliver enhanced value to customers and shareholders.”
Howard Heckes, president and CEO of Masonite said, "Our world-class team is transforming the door industry with differentiated solutions for the home. The combination with Owens Corning enables the acceleration of our Doors That Do More strategy, while delivering immediate and substantial value to our shareholders.
"This agreement brings together two storied companies with a common focus on innovation and making life better at home for the people who use our products every day. As we begin our next chapter after nearly 100 years in business, I am looking forward to Masonite joining the Owens Corning team.”
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