SYDNEY--(BUSINESS WIRE)--James Hardie Industries plc (ASX:JHX), the world’s No. 1 fiber cement siding manufacturer, today announced that it has reached a definitive agreement to acquire Germany-based XI (DL ) Holdings GmbH and its subsidiaries (including but not limited to Fermacell GmbH) acquired from Xella International SA in an all-cash transaction valued at 473 million euros (approximately US$549 million). The acquisition is expected to be completed in the fourth quarter of James Hardie's 2018 fiscal year and is subject to customary closing conditions.
Fermacell is Europe's largest fiber gypsum board manufacturer, with more than 70% of this category, and it also produces cement glued boards. This highly complementary acquisition provides James Hardie with a strong growth platform to expand its fiber cement business into the large and affluent European market. Similar to James Hardie, Fermacell is a leader in high-quality, differentiated product categories, with strong brand recognition, deep customer relationships, extensive distribution channels and a continuous technical sales team. These qualities enable Fermacell to increase sales at prices above the market index and provide strong returns and cash flow.
James Hardie CEO Louis Gries commented: “Fermacell’s market position, listing strategy and strong management team will enable us to expand and accelerate our European business, which has always been our strategic goal. Fermacell will enable us to The diversification of product and end-market portfolio complements our strong position in North America and Australasia, and will create important growth opportunities and bring long-term value to customers, employees and shareholders."
Dr. Jack Truong, President of International Operations of James Hardie, said: “Fermacell is a high-quality company that is compatible with James Hardie in its structure and values. It focuses on technical expertise and relationships with builders, installers and architects. Creating end-user demand for its products is very suitable for our company. Fermacell’s extensive European footprint and capabilities provide the right support platform for accelerating the growth of our fiber cement business in Europe. We also support Fermacell’s core business in the United Kingdom, France and We are excited about the future growth opportunities in regions such as Scandinavia."
James Hardie expects the transaction to increase in value in the second full fiscal year after the transaction closes. In the first full fiscal year after the transaction closes, James Hardie expects transactions to increase, excluding transactions, integration and other one-time costs. Fermacell will account for approximately 15% of the combined business' global revenue. James Hardie intends to fund the acquisition through debt financing.
James Hardie will give a management briefing on its 2018 fiscal second quarter results and the acquisition of Fermacell on Thursday, November 9, 2017 at 10 am Eastern Time.
HSBC served as exclusive financial adviser and separately provided committed debt financing for the acquisition, while DLA Piper served as legal adviser to James Hardie.
About James Hardie Industries plc
James Hardie Industries plc is a world leader in fiber cement siding and back panel manufacturing. Our products are used in multiple markets, including new residential construction (single-family homes and multi-family homes), prefabricated homes, repairs and renovations, and various commercial and industrial applications. We produce many types of fiber cement products with various pattern contours and surface finishes for a variety of applications, including exterior siding and trim as well as soffit lining, interior lining, exterior wall, and floor and tile underlays. Our current major geographic markets include the United States, Canada, Australia, New Zealand, the Philippines and Europe. James Hardie Industries plc is a "public limited company", incorporated and existing under the laws of Ireland.
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Media/Analyst Consulting James Hardie Industries plc Jason Miele, +61 2 8845 3352 Vice President, Investor and Media Relations media@jameshardie.com.au
Media/Analyst Consulting James Hardie Industries plc Jason Miele, +61 2 8845 3352 Vice President, Investor and Media Relations media@jameshardie.com.au