James Hardie To Divest Fermacell In Europe To Holcim For €840 Mln Cash; Plans $250 Mln Buyback
(RTTNews) - James Hardie Industries PLC (JHX, JHX.AX) announced an agreement to sell its sustainable walling and flooring solutions business, Fermacell, in Europe to Swiss building materials major Holcim AG (HLB.F, HCMLF, HOLN.SW) for €840 million or around $980 million, in cash.
Further, James Hardie, a provider of exterior home and outdoor living solutions, announced that its Board has authorized $250 million share repurchase program, to be effected through open-market purchases.
The company said the strategic divestiture of its European operations, including premium fermacell and Aestuver brands, reflects its focus to further align the portfolio with long-term growth strategy.
James Hardie also said it intends to close its European fiber cement business, subject to customary legal, regulatory and employee consultation requirements.
The transaction is expected to close in the first half of calendar 2027, subject to customary closing conditions.
James Hardie expects the sale to be accretive to its margin profile and return on invested capital post-close.
Further, Holcim, in a separate statement, said it projects the acquisition to be earnings per share accretive in year one, and Run-rate EBITDA synergies of around 22 million euros to be realized in year three.
Holcim said the acquisition, which is in line with its commitment to financial discipline and growth-focused capital allocation, would expand its offering in European walling, flooring and fire protection.
Germany -based Fermacell, with more than 1,000 employees, is present in 13 of Europe's key markets with six state-of-the-art production sites. The firm has projected 2026 net sales of around 430 million euros.
The business, including the fermacell and Aestuver brands, will continue to be led by Christian Claus, CEO of Fermacell and President of James Hardie Europe.
Aaron Erter, CEO of James Hardie, stated, "The strategic divestiture of our European operations and the intended closure of the European fiber cement business will enable us to focus on our highest growth and return opportunities."
In the deal, Goldman Sachs & Co. LLC is serving as financial advisor to James Hardie.
In the overnight activity on the NYSE, James Hardie shares were gaining around 1.93 percent, trading at $30.61. In Australia, the shares were up 0.14 percent, at A$42.86.