James Hardie to Sell EU Fermacell Firm for €840m to Holcim
Synopsis
James Hardie has agreed to sell its European Fermacell business to Holcim for €840 million in cash. The company plans to use around US$600 million to repay debt and has approved a new US$250 million share buyback program.
Key Highlights
- James Hardie to sell European Fermacell business to Holcim for €840 million cash
- Ownership of the Fermacell and Aestuver brands is part of the deal.
- Approximately US$600 million of the proceeds will go towards debt repayments;
- James Hardie approves new US$250mln share buyback.
- Expected to close H1 2027, pending approvals
James Hardie to Exit Europe
Holcim to buy EU Fermacell biz from James Hardie for €840M in cash. James Hardie is selling because it wants to exit the European market and direct its resources into parts of the world it believes will grow faster.
The agreement includes its businesses for sustainable walling and flooring in Europe, such as Fermacell and Aestuver brands. James Hardie will also shut its standalone European fibre cement business, contingent on satisfying regulatory, legal and employee consultation requirements.
Debt Repayment and Share Buyback
According to James Hardie, the sale will enhance profit margins and capital use; improve the balance sheet; and be conducive to return on equity as well.
Approximately US $600 million from the proceeds of this sale, should be directed to debt repayment. This will support the company’s aim to cut net debt below two times earnings by September 30, 2027.
The board also approved a US$250 million share repurchase program. The company may repurchase shares through open-market purchases, accelerated buybacks or other means depending on market conditions.
Holcim to Take Over Fermacell
Once the deal is finalised, Fermacell will form part of Holcim’s universe of building systems and modular construction. Current chief executive at Fermacell Christian Claus will keep running the business. The deal is expected to close in the first half of 2027 and is subject to necessary regulatory approvals and employee consultations.
What Does James Hardie Do To Follow the Sale?
James Hardie said it would be able to direct its financial and managerial resources to markets with stronger growth and returns. The business, following the planned exit from Europe, will continue to operate in North America and Australia and New Zealand.
Source: Reuters
At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.
You Might Also Like
Zac Duff: The Tasmanian Who Made Learning Come Alive in 3D
Small Caps and Sector Rotation: Is the Stock Market Rally Finally Diversifying?
