:max_bytes(150000):strip_icc()/GettyImages-1390861123-10d19821494b497097d3cb5cccf75686.jpg "Owens Corning Buys Door Maker Masonite International for $3.9 Billion")
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 share for Masonite, about a 38% premium to Masonite’s closing price yesterday.
- Owens Corning CEO Brian Chambers said the deal will accelerate the company’s long-term enterprise growth strategy.
Shares of Masonite International (DOOR) surged to an all-time high after the door maker struck a deal to be bought out by building and construction materials manufacturer Owens Corning (OC) for $3.9 billion.
Owens Corning will pay $133 per share in cash for Masonite, an almost 38% premium to door maker’s closing price Thursday of $96.61.
Owens Corning said that Masonite will strengthen its position in residential building materials and extend its offerings of “highly valued products and brands.” CEO Brian Chambers said the acquisition will “add a scalable new growth platform” for the company.
Masonite operates 64 manufacturing and distribution facilities, primarily in North America, and has more than 10,000 employees globally. Owens Corning employs approximately 18,000 workers in 30 countries.
The transaction is expected to close in the middle of the year, subject to approvals from Masonite shareholders and regulators.
Shares of Masonite were about 35% higher at more than $130 per share at midday Friday following the news and are up 53% this year. Owens Corning, in contrast, fell 8.5% to nearly $146 Friday.