CHICAGO: James Hardie Industries plc, a building materials provider, announced it will sell its European sustainable walling and flooring business, Fermacell, to Swiss rival Holcim for €840 million (approximately $980 million) in cash as part of a strategic retreat from the region.
The Chicago-based company said the divestiture will allow it to focus on its highest-growth and return opportunities. Alongside the sale, James Hardie intends to close its European fiber cement business, subject to legal, regulatory and employee consultation requirements.
“The strategic divestiture of our European operations and the intended closure of the European fiber cement business will enable us to focus on our highest growth and return opportunities,” said Aaron Erter, CEO of James Hardie. “We believe this divestiture will strengthen our balance sheet, deliver compelling value for our shareholders and position the Fermacell business for long-term success under Holcim’s ownership.”
The transaction is expected to close in the first half of calendar 2027, pending regulatory approvals and completion of required employee consultation processes.
Use of Proceeds and Share Repurchase
James Hardie said it intends to use approximately $600 million of the proceeds to repay debt, accelerating its progress toward a target of reducing net leverage below 2.0x by Sept. 30, 2027. The board also authorized a new $250 million share repurchase program.
The company expects the deal to be accretive to its margin profile and return on invested capital post-close.
Leadership Continuity
Fermacell, which includes the fermacell and Aestuver brands, will continue to be led by Christian Claus, CEO of Fermacell and President of James Hardie Europe.
“Holcim is a strong strategic fit for the Fermacell business, and importantly, customers will continue to receive high quality and excellent service,” Claus said. “We share a common vision, values and commitment to shaping the future of sustainable construction.”
Goldman Sachs & Co. LLC is serving as financial advisor to James Hardie, with DLA Piper as legal advisor.
