TOLEDO, Ohio - Owens Corning (NYSE:OC), a major player in the building and construction materials industry, has cleared a significant regulatory hurdle in its bid to acquire Masonite International Corporation (NYSE:NYSE:DOOR).
The company announced today that the mandatory waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act) expired on Sunday, paving the way for the transaction to progress.
The completion of the HSR Act waiting period, which ended at 11:59 p.m. on April 26, 2024, is a key step in fulfilling the conditions required to finalize the acquisition. This development follows the approval from Masonite's shareholders, who voted in favor of the acquisition during a Special Meeting.
With this regulatory obstacle now behind them, Owens Corning (NYSE:GLW) expects to complete the acquisition of Masonite in May 2024, assuming all other customary closing conditions are met.
Owens Corning, headquartered in Toledo and founded in 1938, operates three integrated businesses—Roofing, Insulation, and Composites. The company is recognized for its commitment to sustainable, energy-efficient solutions and material innovation. Owens Corning employs approximately 18,000 people across 30 countries and reported sales of $9.7 billion in 2023.
The acquisition of Masonite is anticipated to enhance Owens Corning's product offerings and market reach. The information regarding the progress of the acquisition is based on a press release statement from Owens Corning.
InvestingPro Insights
Owens Corning (NYSE:OC) has shown remarkable financial resilience as it navigates through its acquisition of Masonite International Corporation. The company's commitment to returning value to shareholders is evident with its consistent dividend growth, having raised its dividend for 5 consecutive years—a testament to its stable cash flow and confidence in future earnings.
Investors tracking the company's performance will note a substantial 60.32% return over the last year, highlighting the market's positive reception to Owens Corning's strategic moves and operational efficiency. This performance is further underscored by the company's impressive 52.32% price total return in the past six months, signaling robust investor confidence which may be buoyed by the acquisition news.
Key financial metrics from InvestingPro Data also paint a picture of a company with a solid financial foundation. Owens Corning boasts a market capitalization of $14.6 billion, reflecting its significant presence in the industry.
Moreover, the company has managed to maintain a healthy P/E ratio of 13.65, which improves to 11.72 when adjusted for the last twelve months as of Q1 2024. This valuation suggests that the company is potentially undervalued, given its growth prospects and recent performance.
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