Owens Corning To Buy Vinyl Siding Maker

Building materials manufacturer Owens Corning has agreed to acquire vinyl siding maker Fibreboard Corp. for about $600 million.

The deal announced Wednesday will be Owens Corning’s 16th acquisition during the past three years and the largest to date.

Owens Corning, which is based in Toledo, Ohio, said the purchase will strengthen its lineup of building materials products while providing Fibreboard with the resources for continued growth.

The boards of both companies have approved the deal and it is expected to be completed before the fall.

Owens Corning has agreed to pay $55 a share in cash for Fibreboard’s nearly 9.5 million shares and assume about $85 million in debt. The offer represents a 15.8 percent premium over Fibreboard’s closing price of $47.50 a share on Tuesday on the American Stock Exchange.

In trading Wednesday, Fibreboard shares gained $6.87-1/2 a share to $54.37-1/2 while Owens Corning shares rose 62-1/2 cents to $41.75 on the New York Stock Exchange.