Door manufacturer Masonite International (NYSE:DOOR) soared in pre-market trading after announcing that it would be acquired by building and construction materials company Owens Corning (NYSE:OC). The all-cash deal will see Owens Corning pay $133 per Masonite share, representing an approximate 38% premium to its closing share price on February 8. As a whole, the deal is valued at $3.9 billion.
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The acquisition of Masonite is expected to bolster Owens Corning’s residential building materials business. The move aims to generate $12.6 billion in revenue and $2.9 billion in adjusted EBITDA on a pro forma basis.
The acquisition is estimated to close halfway through this year. In addition, Owens Corning also announced a review of its glass reinforcements business within its Composites segment.
Is Owens Corning Stock a Good Buy?
Analysts remain cautiously optimistic about OC stock, with a Moderate Buy consensus rating based on eight Buys and four Holds. Owens Corning stock has increased by more than 53% over the past year, and the average OC price target of $166.92 implies an upside potential of 12.63% at current levels.
