The transaction is valued at approximately $3.9bn and is expected to enhance Corning’s residential building materials portfolio.
Corning aims to capitalise on Masonite’s reputation for innovation and quality, leveraging its commercial capabilities to bolster growth in the doors market.
Masonite, established in 1925, is a provider of interior and exterior doors and door systems for both the residential and commercial construction sectors.
It operates 64 manufacturing and distribution facilities across North America.
Masonite president and CEO Howard Heckes said: “The combination with Owens Corning enables the acceleration of our Doors That Do More strategy, while delivering immediate and substantial value to our shareholders.”
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Corning anticipates that the acquisition will increase its North American residential application revenues to 60% of its total revenue.
The acquisition will be financed through cash reserves and committed debt financing of $3bn from Morgan Stanley Senior Funding.
Subject to approval from Masonite shareholders, regulatory bodies, and the Supreme Court of British Columbia, Canada, the transaction is set for completion in mid-2024.
Post-acquisition, Masonite will continue to operate as a distinct segment within Corning, retaining its brands and presence in Tampa, Florida, US.
Morgan Stanley is serving as the financial advisor for Corning, with additional guidance from Lazard Freres.
Legal counsel for Corning is being provided by Davis Polk & Wardwell, with Stikeman Elliott serving as the Canadian legal counsel.
Meanwhile, Goldman Sachs leads financial advisory for Masonite, with support from Jefferies.
Legal counsel for Masonite is provided by Wachtell, Lipton, Rosen & Katz, and Cassels Brock & Blackwell acts as Canadian legal counsel.