v3.26.1
Business Combination
 3 Months Ended
Jun. 30, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Business Combination Business Combination
On July 1, 2025 (the “Acquisition Date”), the Company completed the acquisition of AZEK which became a wholly-owned subsidiary of the Company. The business combination was accounted for under the acquisition method of accounting. Under such guidance, the Company measured identifiable assets acquired, liabilities assumed and any noncontrolling interests in the acquiree at their fair values as of the Acquisition Date. The Company’s accounting for the acquisition is final.
The following table summarizes the final allocation of the purchase price to the identifiable assets acquired and liabilities assumed as of the Acquisition Date.
(Millions of U.S. dollars)Assets Acquired and
Liabilities Assumed
Cash and cash equivalents$330.1 
Accounts and other receivables102.4 
Inventories280.0 
Prepaid expenses and other current assets21.7 
Property, plant and equipment838.2 
Intangible assets3,370.0 
Other assets - non-current135.1 
Total assets acquired$5,077.5 
Accounts payable and accrued liabilities$211.2 
Other liabilities - current74.0 
Deferred tax liabilities, net813.0 
Other liabilities - non-current158.1 
Total liabilities assumed$1,256.3 
Net assets acquired$3,821.2 
Amount of goodwill recognized$4,572.3 
Total consideration transferred$8,393.5 
Goodwill of $4,572.3 million arising from the acquisition is calculated as the excess of the purchase price over the net assets acquired and is attributable to expected synergies, expanded market opportunities, and enhanced delivery network capabilities. Goodwill related to this acquisition is expected to be nondeductible for tax purposes. See Note 6, “Goodwill and Other Intangible Assets” for more information.
During the three months ended June 30, 2026 and 2025, the Company recorded acquisition-related costs in the condensed consolidated statements of operations and comprehensive income statement of $16.6 million and $29.4 million, respectively. For the three months ended June 30, 2026 all costs incurred
were integration related costs and for the three months ended June 30, 2025 all costs incurred were transaction related costs.
Supplemental Pro Forma Results of Operations
The following unaudited supplemental pro forma financial information presents the Company’s consolidated results of operations as if the acquisition had been completed on April 1, 2024, but using the fair values of the assets acquired and liabilities assumed as of the closing date of the acquisition. This pro forma presentation does not include any impact of transaction synergies. The pro forma results are not necessarily indicative of our results of operations that actually would have been achieved had the acquisition been completed on the assumed date, nor are they necessarily indicative of future results.
Three Months Ended June 30,
(Millions of U.S. dollars)
2025
(Unaudited)
Revenue$1,316.5 
Net income$72.5 
The pro forma results include adjustments directly attributable to the business combination. The adjustments relate to purchase accounting, primarily amortization of intangible assets and the impact of the acquisition financing.