James Hardie Industries plc has signed a definitive agreement to acquire The AZEK Company Inc. for a combination of cash and James Hardie shares with a total transaction value of $8.75 billion, including AZEK’s net debt of approximately $386 million as of December 31, 2024.

James Hardie Industries Plc Chief Executive Officer Aaron Erter defended the company’s $8.75 billion acquisition of home-decking provider AZEK Co. as the deal triggered a stock slump amid uncertainty about the health of the US economy.

Shares in AZEK jumped after the maker of home decking, railings and pergolas agreed to be bought by James Hardie Industries in an $8.75 billion cash-and-stock deal. Shares in the buyer, which is doubling down on the U.