Owens Corning, a prominent player in global building and construction materials, has announced a significant strategic move to further solidify its leadership position in branded residential products. The company has entered into a definitive agreement to acquire Masonite International Corporation, a leading manufacturer known for its innovative interior and exterior doors and door systems.
This acquisition not only strengthens Owens Corning's foothold in the residential building materials sector but also marks the establishment of a scalable new growth platform within a substantial $27 billion addressable market. By leveraging combined commercial, operational, and innovation capabilities, Owens Corning anticipates significant revenue and earnings growth, projecting figures of approximately $12.6 billion in revenue and $2.9 billion in adjusted EBITDA on a pro forma basis. This includes cost synergies of about $125 million, driven by scale and operational efficiencies.
The financial implications of the acquisition are equally promising, with Owens Corning expecting to maintain a net debt-to-EBITDA ratio within its target range of 2-3x. Furthermore, the transaction is projected to be accretive to free cash flow by the end of 2025, with low double-digit percentage growth anticipated.
In addition to bolstering its residential product portfolio, Owens Corning's strategic move involves a review of its glass reinforcements business within the Composites segment.
Commenting on the acquisition, Brian Chambers, Board Chair and Chief Executive Officer of Owens Corning, expressed enthusiasm about the prospect of integrating Masonite's market-leading doors business into their operations. He highlighted Masonite's impressive track record of innovation, brand quality, and category excellence, all of which align well with Owens Corning's strategic objectives.
Established in 1925, Masonite operates a vertically integrated manufacturing model with 64 facilities primarily in North America and a global workforce of over 10,000 employees.
Chambers emphasized the strategic fit between the two companies and the potential for accelerated growth, enhanced value delivery to customers, and increased shareholder value. The acquisition represents a significant step forward for Owens Corning as it seeks to capitalize on emerging opportunities in the residential building materials market.
