James Hardie (ASX:JHX) to Sell European Fermacell Business for EUR840 Million

Sonal Goyal

21 August 2026 10:00 AM AEST

James Hardie (ASX:JHX) to Sell European Fermacell Business for EUR840 Million

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Key Highlights

Fermacell Business sale to Holcim valued at EUR840 million, approximately $980 million in US dollars
Company intends to close its European fiber cement operations, subject to consultation requirements
Approximately $600 million of proceeds earmarked for Debt repayment
New $250 million share repurchase program authorized by the Board

James Hardie Industries plc (ASX:JHX) recently announced that it has agreed to sell its European Fermacell business, including the fermacell and Aestuver brands, to Switzerland-based Holcim for EUR840 million, or approximately $980 million in US dollars, in cash. The Fermacell business covers sustainable walling and flooring solutions.

Planned Closure of Fiber Cement Operations

Separately, James Hardie also intends to close its European fiber cement business, a move that remains subject to customary legal, regulatory and employee consultation requirements, including consultation with competent works councils. The company described the combined actions as steps to align its portfolio with Long-term Growth priorities and to focus resources on its highest-growth and return-generating markets.

Leadership Continuity at Fermacell

Following completion of the Fermacell sale, the business will continue to be led by Christian Claus, who currently serves as CEO of Fermacell and President of James Hardie Europe. The company said Fermacell will complement Holcim's integrated building systems and modular construction offerings once the transaction closes.

Use of Sale Proceeds

James Hardie intends to direct approximately $600 million of the transaction proceeds toward debt repayment, which the company said will accelerate progress toward its target of net Leverage below 2.0 times by 30 September 2027. The transaction is expected to be accretive to the company's Margin profile and return on invested Capital following completion.

New Share Buyback Program

Alongside the divestiture, James Hardie's Board of Directors authorized a new share repurchase program of $250 million. The company said repurchases may occur through open-market purchases, accelerated share repurchases, or other methods, depending on market conditions.

Transaction Timing

The transaction is expected to close in the first half of calendar 2027, subject to customary closing conditions including required regulatory approvals and completion of applicable employee consultation processes.

Conclusion

James Hardie's agreement to divest its European Fermacell business to Holcim, combined with its intention to close its European fiber cement operations, marks a portfolio realignment toward the company's higher-growth core markets. The company plans to apply a majority of the sale proceeds to debt reduction while also returning capital to shareholders through a newly authorized $250 million buyback, with the transaction expected to complete in the first half of calendar 2027.

FAQs

Q: Who is buying James Hardie's Fermacell business?

A: Holcim, a Switzerland-based building materials company, has agreed to acquire the Fermacell business for EUR840 million, approximately $980 million in US dollars.

Q: What is happening to James Hardie's European fiber cement operations?

A: The company intends to close its European fiber cement business, subject to legal, regulatory and employee consultation requirements.

Q: How will James Hardie use the proceeds from the Fermacell sale?

A: Approximately $600 million is expected to be used to repay debt, supporting the company's target of net leverage below 2.0 times by September 2027.

Q: Did James Hardie announce any capital return alongside the divestiture?

A: Yes, the Board authorized a new $250 million share repurchase program.

Q: When is the Fermacell transaction expected to close?

A: The transaction is expected to close in the first half of calendar 2027, subject to regulatory approvals and consultation requirements.

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