Key takeaways
- Owens Corning is buying door maker Masonite International for $3.9 billion to expand its product lines and brands.
- Owens Corning will pay $133 per Masonite share, roughly a 38% premium over Masonite’s closing price yesterday.
- Brian Chambers, CEO of Owens Corning, said the deal will accelerate the company’s long-term business growth strategy.
Shares of Masonite International (DOOR) rose to an all-time high after the door maker reached a deal to be bought by building materials maker Owens Corning (OC) for $3.9 billion.
Owens Corning will pay $133 per share in cash for Masonite, a premium of nearly 38% over the door maker’s closing price Thursday of $96.61.
Owens Corning said Masonite will strengthen its position in residential building materials and expand its offering of “great value products and brands.” CEO Brian Chambers said the acquisition will “add a new scalable growth platform” for the company.
Masonite operates 64 manufacturing and distribution facilities, primarily in North America, and has more than 10,000 employees worldwide. Owens Corning employs approximately 18,000 workers in 30 countries.
The transaction is expected to close by mid-year, subject to approval by Masonite shareholders and regulators.
Masonite shares rose about 35% to more than $130 per share at midday Friday following the news and are up 53% this year. Owens Corning, on the other hand, fell 8.5% to nearly $146 on Friday.
