- Shares of Masonite surge after agreeing to be acquired by Owens Corning
- Owens Corning to pay $133 per share, a 37.7% premium
- Masonite’s doors business strengthens Owens Corning’s position in residential building materials
- Deal expected to close in mid-2024
Shares of Masonite International Corp. experienced a significant surge as construction-materials company Owens Corning announced its plans to acquire the doors maker in a cash deal valued at $3.9 billion. The acquisition, which comes with a premium price, is set to bolster Owens Corning’s presence in the residential building materials sector and expand its range of highly-regarded products and brands. This news has propelled Masonite’s stock to its highest levels in 15 years, offering substantial gains for investors.
Masonite Acquired by Owens Corning
Owens Corning has agreed to purchase Masonite International Corp. in a cash deal worth $3.9 billion. Under the terms of the agreement, Owens Corning will pay $133 for each outstanding Masonite share, representing a premium of 37.7% above Thursday’s closing price. This acquisition will create new growth opportunities for Owens Corning, strengthening its position in the residential building materials market and expanding its portfolio of highly-valued products and brands.
Market Reaction and Potential
Following the announcement, Masonite’s stock experienced a remarkable surge of 34% in premarket trading, setting it on track for its largest one-day gain since 2009. This surge highlights the market’s positive response to the acquisition and the potential it holds for both companies. On the other hand, Owens Corning’s stock pulled back slightly by 2.5% after reaching record highs in the past two sessions.
Financial Details and Timeline
The deal between Masonite and Owens Corning is expected to close in mid-2024. Owens Corning plans to finance the acquisition using its available cash and debt financing of $3 billion. This strategic move will allow Owens Corning to expand its operations and further solidify its position in the construction-materials industry.
Company Backgrounds and Stock Performance
Masonite International Corp., founded in 1925 and based in Florida, is a leading manufacturer of doors. Its stock has rallied 20.4% in the past three months, reflecting investor confidence in the company’s performance and growth potential. Owens Corning, an Ohio-based company with roots dating back to the 1800s, specializes in construction materials and has witnessed a 31% increase in its stock value over the same period. Both companies’ stock performances have outpaced the broader market, with the S&P 500 index advancing 15%.
The acquisition of Masonite International Corp. by Owens Corning in a $3.9 billion deal has sparked significant market excitement, leading to a surge in Masonite’s stock. This strategic move aims to strengthen Owens Corning’s position in the residential building materials sector and expand its portfolio of high-quality products and brands. With the deal set to close in mid-2024, investors and industry experts will be closely monitoring the integration of these two companies and the potential synergies that may arise. As the construction-materials industry continues to evolve, this acquisition sets the stage for a new era of growth and innovation.