Masonite International Corp. to be Acquired by Owens Corning
Masonite International Corp. (DOOR) experienced a remarkable surge in its stock price, jumping 34% in premarket trading on Friday. This surge comes after the doors manufacturer reached an agreement to be acquired by construction materials company Owens Corning (OC) in a cash deal worth $3.9 billion.
Owens Corning's stock also saw a modest increase of 0.3% in the premarket. As per the terms of the deal, Owens Corning will pay $133 for each outstanding share of Masonite, representing an impressive 37.7% premium over Thursday's closing price of $96.61. It is also worth noting that this acquisition surpasses the record close of $130.70 reached on April 16, 2021.
The completion of this deal is anticipated to take place in mid-2024. Owens Corning plans to finance the acquisition through a combination of available cash and debt financing, amounting to $3 billion. In a joint statement, both companies emphasized the significance of this transaction: "The addition of Masonite's market-leading doors business creates a new growth platform for Owens Corning, strengthening the company's position in residential building materials and extending its offering of highly valued products and brands."
This significant surge in Masonite's stock is set to become its best single-day gain since August 18, 2009 when it soared 34.8%. Over the past three months prior to this announcement, Masonite's shares have already shown impressive growth with a 20.4% rally. Furthermore, Owens Corning's shares have experienced a notable increase of 31%, while the S&P 500 has advanced by 15%.
Key Details:
- Masonite International Corp. to be acquired by Owens Corning for $3.9 billion
- Masonite stock surges 34% in premarket trading
- Owens Corning stock sees a modest increase of 0.3% in the premarket
- Owens Corning to pay $133 per outstanding Masonite share, representing a 37.7% premium
- Deal expected to close in mid-2024
- Acquisition to be financed using cash on hand and $3 billion in debt financing
- Addition of Masonite's doors business strengthens Owens Corning's position in residential building materials
- Masonite's stock experiences best single-day gain since August 18, 2009
- Masonite shares have rallied 20.4% over the past three months
- Owens Corning shares have increased by 31%
- S&P 500 has advanced by 15%
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