James Hardie has announced plans to divest its European operations, including an agreement to sell its Fermacell business in Europe to Holcim for €840 million in cash.
In an announcement published by the company, James Hardie said the move would further align its portfolio with its long-term growth strategy.
The agreement covers its sustainable walling and flooring solutions business Fermacell in Europe, including the fermacell and Aestuver brands, which will be acquired by Switzerland-based building materials group Holcim.
Discussing the move, Miljan Gutovic, Holcim CEO, said: “This strategic acquisition is another milestone in our vision to be the leading partner for sustainable construction, expanding Holcim’s high-value Building Solutions in line with our NextGen Growth 2030 strategy. Fermacell and Aestuver will complement Holcim’s existing premium brands Ytong, Silka, Hebel and Multipor – broadening our integrated building systems and modular construction offerings. I look forward to welcoming Fermacell’s talented employees to Holcim.”
Separately, James Hardie said it intends to close its European fibre cement business, subject to customary legal, regulatory and employee consultation requirements, including consultation with competent works councils.
James Hardie CEO Aaron Erter said the divestiture and intended closure would allow the company to focus on its “highest growth and return opportunities”.
He added: “We believe this divestiture will strengthen our balance sheet, deliver compelling value for our shareholders and position the Fermacell business for long-term success under Holcim’s ownership.”
Following completion of the transaction, Fermacell will continue to be led by Christian Claus, CEO of Fermacell and President of James Hardie Europe.
Claus said Holcim represented a “strong strategic fit” for the business and stressed that customers would continue to receive high-quality products and service.
“With Holcim’s global reach and complementary capabilities, we will be well positioned to support a smooth transition, build on our strong foundation and accelerate our growth,” he said.
James Hardie said approximately $600 million of the proceeds is expected to be used to repay debt, while its Board has also authorised a new $250 million share repurchase programme. The Fermacell transaction is expected to complete in the first half of 2027, subject to customary closing conditions, including regulatory approvals and applicable employee consultation processes.