Owens Corning announced the completion of its acquisition of Masonite International Corp., a global provider of interior and exterior doors and door systems. All outstanding Masonite common shares have been acquired by Owens Corning for $133 per share, with an implied transaction value of approximately $3.9 billion.
Key takeaways
- Expands Owens Corning's leadership position in branded residential products with a complementary line of interior and exterior doors and door systems.
- Creates a scalable new growth platform leveraging combined commercial, operational and innovation capabilities.
- Enhances Owens Corning's financial profile.
- Generates strong free cash flow to support capital allocation strategy.
- Names Chris Ball president of doors business.
Details of the deal
With the completion of the acquisition, Owens Corning's annual revenue grows to $12.5 billion, with adjusted EBITDA of $2.9 billion on a synergized basis and reduced ongoing capital intensity. Owens Corning expects to achieve approximately $125 million of run-rate cost synergies.
Masonite operates 64 manufacturing and distribution facilities, primarily in North America, and has over 10,000 employees globally. With the completion of the acquisition, Masonite's common shares will cease trading on the New York Stock Exchange and will be delisted.
Corporate response
"The addition of Masonite to Owens Corning marks a significant milestone for our company, as we further strengthen our position as a market leader in building and construction materials," says Brian Chambers, chair and CEO, Owens Corning. "Over the past several years, Owens Corning has been on a journey to transform and grow our company through strategic choices and strong execution. The completion of this acquisition represents the start of an exciting next chapter that allows us to leverage our proven commercial, operational and innovation capabilities to increase our offering of highly valued branded building materials for our customers. We are excited about expanding into this new growth platform and for the opportunities ahead."
New president named
Owens Corning named Chris Ball as president of its doors business. Ball previously served as president of Masonite's global residential business. He will report directly to chair and CEO Brian Chambers and serve as a member of the company's executive committee.
"We are pleased to welcome Chris to the Owens Corning executive team. His proven track record of growing businesses and developing talent, as well as his strong commercial execution, operational knowledge, and customer focus, will be instrumental as he leads this business into the future," says Chambers. "Today we are combining two highly talented teams with a shared focus on keeping each other safe, helping our customers win and grow in the market, and delivering value for our shareholders. We look forward to working together with Chris and all of our new colleagues from Masonite."
