The AZEK Company Enters Long-term Partnership with Doman Building Materials to Expand Distribution of TimberTech® Decking in Canada

Rhea-AI Summary

The AZEK Company Inc. (NYSE: AZEK) has announced a long-term distribution partnership with Doman Building Materials Group (TSX: DBM) to expand the availability of TimberTech decking products across Canada. This strategic collaboration, effective January 1, 2025, aligns with AZEK's goal to increase its market presence and offer environmentally sustainable decking solutions to Canadian customers.

TimberTech decking is known for its premium aesthetics, innovative technology, and top-rated fire resistance. Made from up to 85% recycled waste and scrap material, it exemplifies AZEK's commitment to sustainability. Doman's extensive distribution network and industry expertise make them an ideal partner for AZEK, building on their existing relationship in both the U.S. and Canada.

Positive

• Strategic partnership with Doman Building Materials to expand distribution of TimberTech decking in Canada
• Increased market presence and availability of AZEK products in Canada starting January 1, 2025
• TimberTech decking made from up to 85% recycled waste and scrap material, aligning with sustainability trends

Negative

• None.

Market Research Analyst

This partnership between AZEK and Doman is a strategic move that could significantly impact AZEK's market presence in Canada. The deal expands distribution of TimberTech decking products, potentially increasing AZEK's market share in the Canadian outdoor living sector. However, the delayed start date (January 1, 2025) suggests a 0% immediate impact on revenues.

Doman's extensive distribution network in Canada could provide AZEK with a competitive advantage, potentially leading to increased sales and brand recognition. The partnership also aligns with the growing trend towards environmentally sustainable products, which could resonate well with eco-conscious Canadian consumers. While this news is positive for AZEK's long-term growth strategy, investors should temper short-term expectations due to the future implementation date.

Financial Analyst

From a financial perspective, this partnership holds promise for AZEK's future revenue growth in the Canadian market. However, the delayed implementation until 2025 means any financial impact won't be reflected in near-term earnings reports. Investors should focus on AZEK's current financial performance and existing growth initiatives in the meantime.

The multi-year nature of the agreement provides stability and predictability for future revenue streams from Canadian operations. This could potentially lead to improved forecasting accuracy and investor confidence. It's important to monitor AZEK's capital expenditures and inventory management in the lead-up to 2025, as expanding into new markets often requires upfront investments. Overall, while positive, this news is unlikely to have a significant impact on AZEK's stock price in the short term.

CHICAGO & VANCOUVER--(BUSINESS WIRE)-- The AZEK Company Inc. (NYSE: AZEK) ("AZEK"), a leading manufacturer of beautiful, low-maintenance, and environmentally sustainable outdoor living products, is pleased to announce a long-term distribution partnership with Doman Building Materials Group Ltd. (TSX: DBM) (“Doman”), a premier Canadian distributor. This strategic partnership will expand the availability of AZEK’s TimberTech brand of decking products to customers across Canada.

Under this agreement, Doman will distribute TimberTech decking, known for its unparalleled performance, innovative technology, premium aesthetics and top-rated fire resistance. This partnership aligns with AZEK’s commitment to expanding its market presence and providing Canadian customers with high-performance, environmentally sustainable decking solutions made from up to 85% recycled waste and scrap material.

Doman has a longstanding relationship with AZEK in both the U.S. and Canada, having successfully distributed products under the TimberTech and AZEK Exteriors brands in the U.S., as well as AZEK’s Versatex® brand of trim, moulding and siding products in Canada for several years. Doman’s extensive distribution network and industry expertise make them an ideal partner for AZEK.

“We are thrilled to partner with Doman, a company that shares our dedication to service, quality and success,” said Jonathan Skelly, President of Residential and Commercial for AZEK. “This collaboration positions us to meet the growing demand for TimberTech decking products and will allow us to better serve the Canadian market in 2025 and beyond.”

This multi-year distribution agreement will take effect on January 1, 2025. Together, the companies aim to deliver exceptional value and service to their customers.

For more information on TimberTech, visit TimberTech.com.

For more information on Doman Building Products, visit Domanbm.com.

About The AZEK^® Company

The AZEK Company Inc. (NYSE: AZEK) is the industry-leading designer and manufacturer of beautiful, low maintenance and environmentally sustainable outdoor living products, including TimberTech® decking and railing, Versatex® and AZEK® Trim, and StruXure® pergolas. Consistently awarded and recognized as the market leader in innovation, quality, aesthetics and sustainability, our products are made from up to 85% recycled material and primarily replace wood on the outside of homes, providing a long-lasting, eco-friendly, and stylish solution to consumers. Leveraging the talents of its approximately 2,000 employees and the strength of relationships across its value chain, The AZEK Company is committed to accelerating the use of recycled material in the manufacturing of its innovative products, keeping hundreds of millions of pounds of waste and scrap out of landfills each year, and revolutionizing the industry to create a more sustainable future. The AZEK Company has recently been named one of America’s Climate Leaders by USA Today, a Top Workplace by the Chicago Tribune and U.S. News and World Report, and a winner of the 2024 Real Leaders® Impact Awards. Headquartered in Chicago, Illinois, the company operates manufacturing and recycling facilities in Ohio, Pennsylvania, Idaho, Georgia, Nevada, New Jersey, Michigan, Minnesota and Texas.

About Doman Building Materials

Founded in 1989, Doman is headquartered in Vancouver, British Columbia, and trades on the Toronto Stock Exchange under the symbol DBM. As Canada’s only fully integrated national distributor in the building materials and related products sector, Doman operates several distinct divisions with multiple treating plants, planing and specialty facilities and distribution centres coast-to-coast in all major cities across Canada and select locations across the United States. Strategically located across Canada, Doman Building Materials Canada operates distribution centres coast-to-coast, and Doman Treated Wood Canada operates multiple treating plants near major cities; headquartered in Dallas, Texas, Doman Lumber operates 21 treating plants, two specialty planing mills and five specialty sawmills located in nine states, distributing, producing and treating lumber, fencing and building material servicing the central U.S.; Doman Building Materials USA and Doman Treated Wood USA serve the U.S. west coast with multiple locations in California and Oregon; and in the state of Hawaii the Honsador Building Products Group services 15 locations across all the islands. The Company’s Canadian operations also include ownership and management of private timberlands and forest licenses, and agricultural post-peeling and pressure treating through its Doman Timber operations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240805557840/en/

AZEK Media Contact:

Amanda Cimaglia

Media Relations

312-809-1093

media@azekco.com

Doman Media Contact:

Ali Mahdavi

Investor Relations

416-962-3300

ali.mahdavi@domanbm.com

Source: The AZEK Company Inc.

FAQ

When does AZEK's distribution partnership with Doman Building Materials for TimberTech decking in Canada begin?

The multi-year distribution agreement between AZEK and Doman Building Materials for TimberTech decking in Canada will take effect on January 1, 2025.

What percentage of recycled materials is used in AZEK's TimberTech decking products?

AZEK's TimberTech decking products are made from up to 85% recycled waste and scrap material, demonstrating the company's commitment to environmentally sustainable solutions.

What are the key features of AZEK's TimberTech decking products mentioned in the partnership announcement?

TimberTech decking products are known for their unparalleled performance, innovative technology, premium aesthetics, and top-rated fire resistance.

How does the partnership with Doman Building Materials align with AZEK's business strategy?

The partnership aligns with AZEK's commitment to expanding its market presence and providing Canadian customers with high-performance, environmentally sustainable decking solutions.