Shares of Masonite International Corp. rocketed toward their best day in 15 years Friday, after the doors maker agreed to be acquired by construction-materials company Owens Corning in a cash deal valued at $3.9 billion.
Under the terms of the deal, Owens Corning
OC,
will pay $133 for each outstanding Masonite share
DOOR,
That represents a 37.7% premium to Thursday’s closing price of $96.61 and is above the record close of $130.70 reached on April 16, 2021.
“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,” the companies said in a statement.
Masonite’s stock soared 34% in premarket trading, which puts it on track for the biggest one-day gain since it soared 34.8% on Aug. 18, 2009.
Owens Corning’s stock pulled back 2.5%, after closing at record highs the past two sessions.
The deal is expected to close in mid-2024, with Owens Corning saying it will be financed with cash on hand and debt financing of $3 billion.
Florida-based Masonite was founded in 1925, and Ohio-based Owens Corning has roots back to the 1800s.
Masonite’s stock has rallied 20.4% over the past three months through Thursday, while Owens Corning shares have run up 31% and the S&P 500 index
SPX
has advanced 15%.
