Owens Corning (NYSE: OC) confirmed that it has inked an agreement with JR Plastics Corporation to buy WearDeck. WearDeck has earned a reputation as a premium producer of composite weather-resistant decking for commercial and residential applications in North America. WearDeck products provide a long-lasting, strong, and robust solution for weather-resistant decking.
WearDeck's purchase is a positive step forward in Owens Corning's strategy of driving continued growth and transitioning its Composites business to focus on high-value material solutions for the building and construction industry. WearDeck offers tremendous prospects to extend its current targeted markets by leveraging its building materials knowledge and glass fiber material science technologies.
WearDeck decking is made of high-density polyethylene (HDPE) with Owens Corning's glass fiber technology, resulting in a high-performance product that outperforms most other decking options. WearDeck's main office and production facility are in Ocala, Florida, and it employs roughly 100 employees.
Furthermore, this acquisition is beneficial for Owens as WearDeck intends to generate $60 million in sales for the entire year of 2022 and to considerably expand this business in the coming years to help Owens Corning meet its goal of $10 billion in revenue by 2024. According to Owens Corning, the North American decking market is worth more than $7 billion and is growing at a rate of around 5% per year. Composite decking goods account for more than 30% of the market, which is likely to grow in the future years.
The companies haven’t revealed the terms and conditions of the agreement but confirmed that the acquisition agreement is contingent upon regulatory authorizations and other usual conditions. Additionally, companies are planning to execute the deal by the end of the second quarter.