James Hardie Industries (ASX:JHX) entered into an agreement to sell its Fermacell sustainable walling and flooring unit in Europe, including the fermacell and Aestuver brands, to Holcim for about $980 million in cash, according to a Friday statement by the company.
About $600 million of the transaction proceeds will be used to repay debt, accelerating progress toward the company's stated target of net leverage below two times by Sept. 30, 2027, with the board also authorizing a new $250 million share repurchase program.
The deal is expected to close in the first half of calendar 2027, per the statement.
The company said it also intends to close its European fiber cement business, subject to customary legal, regulatory, and employee consultation requirements.