James Hardie Industries Plc CEO Aaron Erter has defended the company's recent acquisition of AZEK Co., a home-decking provider, amid concerns over the US economy's health. The acquisition, valued at $8.75 billion, caused James Hardie's stock to drop by up to 14% in Sydney, resulting in a market value loss of about A$2.9 billion.

With a majority of its revenue coming from North America, James Hardie has its origins in Australia and has been listed there since 1951. The purchase of AZEK, based in Chicago, signals a strategic move to focus more on the US housing market. Despite uncertainties such as potential economic risks and President Trump's tariff policies, Erter remains optimistic about the long-term benefits of this acquisition.

The deal, which values AZEK shares at $56.88 each, represents a 37% premium to their closing price on Friday. The combined company, set to be listed on the New York Stock Exchange, will offer a range of home-building products targeted at the $23 billion North American market. Erter highlights the significant market opportunity, with millions of aging homes in the US requiring repair, siding, and new decking.

While some analysts express concerns about the pace of the US housing recovery, others like Jack McManus see the overall outlook as positive. The acquisition of AZEK marks a strategic shift for James Hardie away from its troubled past involving asbestos products, with the company having made substantial compensatory payments in recent years.