James Hardie buying European gypsum company

James Hardie Industries plc, the Australian fiber cement siding manufacturer, has entered into an agreement to acquire German-based XI (DL) Holdings GmbH and its subsidiaries from Xella International S.A. in an all-cash transaction valued at 473 million euros (approximately US$549 million).

The acquisition is expected to close in the fourth quarter of James Hardie’s 2018 fiscal year and includes Fermacell, one of Europe’s largest fiber gypsum board manufacturers.

Fermacell has more than a 70% share of the category in Europe and also produces cement-bonded boards. This acquisition provides James Hardie with a growth platform for expanding its fiber cement business into the European market, James Hardie said in a statement.

“Fermacell’s market position, go-to-market strategy and strong management team will enable us to scale and accelerate our European business, which has long been a strategic goal,” said Louis Gries, James Hardie CEO. “Fermacell will diversify our geographic, product and end-market portfolio, complementing our strong positions in North America and Australasia, and will create significant growth opportunities and drive long-term value for customers, employees and shareholders.”