Aug. 24 at 10:20 PM
Fitch Ratings affirmed James Hardie International Group’s long-term issuer default rating at BBB and revised its outlook to Stable from Negative following the company’s agreement to sell its European business. Fitch also affirmed BBB+ ratings on its senior secured bonds, term loans and revolving credit facility.
James Hardie agreed to sell Fermacell, its European wall and flooring solutions business, to Holcim for approximately €840 million (
$980 million), implying an 11.5x fiscal 2026 EBITDA multiple. The deal is expected to close in the first half of 2027, subject to customary conditions. James Hardie also plans to exit its European fiber-cement business.
Fitch expects free cash flow and about
$600 million in net sale proceeds to support further debt reduction. Adjusted leverage fell from 3.9x at fiscal 2026 year-end to 3.2x after the company prepaid
$400 million of senior unsecured notes, with Fitch forecasting leverage to decline toward 2.5x by fiscal 2027.
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