Owens Corning and Masonite International Corporation announced they have entered into a definitive agreement under which Owens Corning will acquire all outstanding shares of Masonite for $133.00 per share in cash, representing 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. The implied transaction value is approximately $3.9 billion.
Motivation behind the acquisition
The addition of Masonite’s doors business creates a new growth platform for Owens Corning, hoping to strengthen the company’s position in residential building materials and extend its offering of high-value products and brands. Leveraging Owens Corning’s commercial capabilities and market model serving contractors, builders, and distributors, the company expects to build on Masonite’s track record of innovation, brand quality, and category excellence to further grow in the doors market.
What the companies are saying
“We are excited by this opportunity to add a scalable new growth platform for our company,” says Brian Chambers, Board Chair and Chief Executive Officer of Owens Corning. “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. 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.”
"Our world-class team is transforming the door industry with differentiated solutions for the home,” says Howard Heckes, President and Chief Executive Officer of Masonite. “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."
