James Hardie Industries said on Thursday it would sell its European walling and flooring business Fermacell to Holcim for €840 million, a move aimed at accelerating debt reduction and returning capital to shareholders.
The transaction, expected to close in the first half of 2027 subject to regulatory and employee consultation requirements, will provide James Hardie with approximately $980 million in cash proceeds at current exchange rates. The company plans to use roughly $600 million of the proceeds to repay debt, advancing its goal of reducing net leverage below 2.0x by September 30, 2027. James Hardie’s board also authorized a $250 million share repurchase program, with purchases to be executed through open-market transactions, accelerated share repurchases or other methods as determined by management.
James Hardie intends to close its European fiber cement operations, aligning its portfolio with long-term growth priorities. The divestiture follows a strategic review to focus on higher-growth markets and enhance returns. Aaron Erter, CEO of James Hardie, said the transaction would strengthen the balance sheet and position Fermacell for continued success under Holcim’s ownership.
Christian Claus, CEO of Fermacell and President of James Hardie Europe, will continue leading the business after the sale. Holcim said the acquisition complements its building systems portfolio and supports its modular construction offerings. The deal is expected to be accretive to margins and return on invested capital post-close.
Goldman Sachs advised James Hardie on the transaction, while DLA Piper served as legal counsel. The agreement includes the fermacell and Aestuver brands.
