Owens Corning to Buy Masonite in $3.9B Deal

Owens Corning announced it will acquire door maker Masonite International, for $3.9 billion in cash at $133 per share, or about a 38% premium to its closing price on February 8.

It plans to fund the transaction with cash and $3 billion of committed debt financing from Morgan Stanley.

Owens Corning, a manufacturer of building and construction materials, stated that Masonite’s door business provides a growth platform and improves its position in residential building supplies.

“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,” said Brian Chambers, chair and CEO of Owens Corning.

The acquisition will increase Owens Corning’s revenue to $12.6 billion. It estimates cost synergies of around $125 million per year from scale and operational savings, with the majority realized by the end of the second year, following the transaction.

The companies expect the deal to close in the middle of 2024, subject to Masonite shareholder approval, regulatory approvals and other customary closing conditions.

Masonite, founded in 1925, has 64 manufacturing and distribution locations, the majority of which are in North America, whereas Owens Corning, headquartered in Toledo, OH, operates in 31 nations.

Owens Corning also announced that it was conducting a strategic evaluation of its glass-reinforcements business, which is part of the company’s Composites segment.