Global fiber cement siding manufacturer James Hardie, has announced that it has entered into a definitive agreement to acquire German-based XI (DL) Holdings GmbH and its subsidiaries (including, but not limited to, Fermacell GmbH) from Xella International S.A. in an all-cash transaction valued at US$549 million (A$716 million). The acquisition is expected to close in the fourth quarter of James Hardie’s 2018 fiscal year and is subject to customary closing conditions.
Louis Gries, CEO of James Hardie, commented, “Fermacell’s market position, goto-market strategy and strong management team will enable us to scale and accelerate our European business, which has long been a strategic goal. Fermacell will diversify our geographic, product and end-market portfolio, complementing our strong positions in North America and Australasia, and will create significant growth opportunities and drive long-term value for customers, employees and shareholders.”
Dr. Jack Truong, President, International Operations of James Hardie, said, “Fermacell is a highquality business that, in its structure and values, is compatible with James Hardie. Its focus on technical expertise and relationships with builders, installers and architects to create end-user demand for its products is an excellent fit for our company. Fermacell’s broad European footprint and capabilities provide the right enabling platform to accelerate our fiber cement business growth in Europe. We are also excited about the future growth opportunities of Fermacell’s core business in regions such as the UK, France, and Scandinavia.”