Owens Corning, known for its building and construction materials, completed the acquisition of Masonite International (NYSE:DOOR) Corporation, a leading provider of interior and exterior doors and door systems. The transaction, valued at approximately $3.9 billion, translates to $133.00 per share for all outstanding Masonite common shares.
This move expands Owens Corning branded residential products portfolio and is expected to create a scalable new growth platform. The company forecasts generating strong free cash flow to support a consistent capital allocation strategy. With the acquisition, Owens Corning’s annual revenue is projected to grow to $12.5 billion, with an adjusted EBITDA of $2.9 billion on a synergized basis, and a reduction in ongoing capital intensity.
Chris Ball (NYSE:BALL) has been appointed as President of the newly formed Doors business. Ball, with a history of leadership roles at Fortune 500 companies, previously served as President of Masonite’s Global Residential business. He will report directly to Brian Chambers, Chair and Chief Executive Officer of Owens Corning, and will be a member of the company’s Executive Committee.
Masonite’s shareholders approved the transaction on April 25, 2024, leading to the cessation of trading and delisting of Masonite’s common shares from the New York Stock Exchange. Owens Corning expects the acquisition to drive significant shareholder value, with a return on invested capital (ROIC) exceeding the company’s cost of capital by the end of the third year following the close.
The combined entity now operates under the Owens Corning brand, with a commitment to providing sustainable, energy-efficient solutions for the building and construction industry. The company has a global workforce of over 25,000 employees across 31 countries.
Owens Corning’s strategic acquisition of Masonite aligns with its journey of transformation and growth, aiming to leverage commercial, operational, and innovation capabilities to enhance its product offerings and market position.
This news article is based on a press release statement from Owens Corning.