Owens Corning Will Buy Fibreboard

Building materials manufacturer Owens Corning has agreed to acquire vinyl siding maker Fibreboard Corp. for about $600 million. The purchase will be Owens Corning’s 16th acquisition in the last three years and its largest to date. Toledo, Ohio-based Owens said the move will strengthen its lineup of building materials products while providing Dallas-based Fibreboard with the resources for continued growth. The boards of both companies have approved the deal, which is expected to be completed before the fall. Owens 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% premium over Fibreboard’s closing price of $47.50 a share Tuesday. On Wednesday, Fibreboard shares gained $6.8125 to close at $54.3125 on the American Stock Exchange; Owens shares rose 50 cents to close at $41.625 on the New York Stock Exchange.