Owens Corning Acquires Masonite International Corporation

Owens Corning recently announced its acquisition of Masonite International Corporation, with the transaction expected to be implemented through a plan of arrangement. The acquisition will be financed by cash on hand and a committed debt financing of up to $3 billion provided by Morgan Stanley Senior Funding, Inc. As of May 9, 2024, 93.74% of the outstanding Masonite 2028 notes had been validly tendered and not validly withdrawn pursuant to the terms of the Tender Offer.

The unaudited pro forma combined financial information, set to show the estimated effects of the Transaction, indicates the following changes:

  1. Cash and cash equivalents are expected to increase from $1.254 billion to $2.313 billion after the acquisition.
  2. Receivables, net, will increase from $1.410 billion to $1.747 billion post-acquisition.
  3. Inventories will increase from $1.205 billion to $1.609 billion.
  4. Goodwill will increase from $1.385 billion to $3.038 billion.
  5. Total assets will increase from $11.269 billion to $15.691 billion.
  6. Accounts payable will increase from $1.177 billion to $1.328 billion.
  7. Long-term debt, net of current portion, will increase from $2.645 billion to $3.008 billion.
  8. Total liabilities will increase from $5.997 billion to $10.395 billion.
  9. Total stockholders’ equity will increase from $5.229 billion to $5.243 billion.

These figures provide a clear picture of the financial changes expected as a result of the acquisition. As a result of these announcements, the company's shares have moved 0.0% on the market, and are now trading at a price of $176.87. Check out the company's full 8-K submission here.

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