Masonite's stock rockets as Owens Corning's buyout bid tops record close

By Tomi Kilgore

The $3.9 billion cash deal will combine a 99-year-old door maker with a construction-materials company with roots back to the 1800s

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%.

-Tomi Kilgore

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02-09-24 0752ET

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