Shares of Masonite International Corp.
DOOR,
rocketed 34% toward its best day in 15 years in premarket trading Friday, after the doors maker agreed to be acquired by construction materials company Owens Corning
OC,
in a cash deal valued at $3.9 billion. Owens Corning’s stock tacked on 0.3% in the premarket. Under terms of the deal, Owens Corning will pay $133 for each Masonite share outstanding, which 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 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. “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, which was headed for the biggest one-day gain since it soared 34.8% on Aug. 18, 2009, has rallied 20.4% over the past three months through Thursday, while Owens Corning shares have run up 31% and the S&P 500 has advanced 15%.
