The current trading session is witnessing a significant surge in Masonite International Corporation (NYSE: DOOR) stock. As of the last check, Masonite stock has escalated by 34.77% to $130.20, marking a notable development in the company’s financial landscape. This uptick in DOOR stock value on the US charts is attributed to a recent takeover proposition extended to the corporation.
Masonite (DOOR) has formally disclosed its entry into a definitive agreement with Owens Corning, delineating a strategic move towards acquisition. According to the agreement, Owens Corning will buy all of Masonite’s outstanding stocks with cash at $133.00 per share. This proposal offers a notable 46% increase over Masonite’s average price for 20 days and signifies a rise of about 38% over the company’s closing stock price on February 8, 2024.
The buying ratio, based on an estimated deal worth of $3.9 billion, stands at approximately 8.6 times the adjusted EBITDA for 2023, or 6.8 times when considering $125 million in synergies. The integration of Masonite’s esteemed doors business into Owens Corning’s portfolio heralds a novel avenue for growth, bolstering the latter’s foothold in the residential building materials sector and broadening its spectrum of coveted products and brands
Capitalizing on Owens Corning’s distinctive commercial capabilities and established go-to-market strategy catering to contractors, builders, and distributors, the company anticipates leveraging Masonite’s history of innovation, brand excellence, and sectoral prowess to further expand its presence in the doors market. The Business Corporations Act (British Columbia) will be followed by a statutory plan of arrangement for the transaction’s implementation.
The Boards of Directors of both companies have approved the deal with unanimous consent. Closing is expected to occur in the middle of 2024, pending approval from Masonite shareholders, regulatory agencies, and customary closing requirements, such as the Supreme Court of British Columbia issuing interim and final orders approving the arrangement plan.
Financial backing for the transaction will be facilitated through a combination of existing cash reserves and a committed debt financing package of $3 billion extended by Morgan Stanley Senior Funding, Inc. Post-closure, Masonite will function as a distinct reportable segment, retaining its brands and a presence in Tampa, Florida.
