James Hardie sells European operations for €840M

• James Hardie has executed an agreement to sell its European walling and flooring business, Fermacell, to Holcim for €840 million in cash.
• The divestiture will help fund a newly authorised US$250 million share repurchase programme and support immediate debt reduction.
• The company stated this strategic exit will align its corporate portfolio to focus exclusively on higher-growth global regions.

James Hardie (ASX:JHX) will sell Fermacell to Holcim for €840 million to simplify its global footprint.

This divestiture contrasts with previous European expansion efforts and precedes the intended closure of its regional fibre cement business.

" The strategic divestiture of our European operations and the intended closure of the European fibre cement business will enable us to focus on our highest growth and return opportunities," said James Hardie CEO Aaron Erter.

The transaction includes the Fermacell and Aestuver brands, alongside a newly authorised US$250 million share repurchase programme.

Following the announcement, the James Hardie share price was up at $42.80, wrapping up a deal the company stated will improve returns.

Fermacell operates across 13 European markets and produces sustainable walling and flooring solutions for the construction industry.

Executive Christian Claus will continue leading the integrated building systems division to maintain operational continuity under new ownership.