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Carlyle in $1bn roofing deal

The private equity giant has announced plans to merge building and roofing product manufacturer ElkCorp with commercial and residential roofing materials maker Atlas Roofing Corporation.

Global private equity firm The Carlyle Group has agreed to acquire ElkCorp, a roofing and building products manufacturer, for approximately $1 billion (€764 million), according to a Carlyle statement.  

The transaction value includes approximately $173 million in debt.

ElkCorp’s shareholders will receive $38 in cash per share, the statement said. That value is 51 percent more than the company’s closing share price on November 3. The company announced its review of “strategic alternatives” the next day.

The deal is expected to close in the first quarter of next year, the statement said.

Carlyle plans to merge ElkCorp, which is led by chairman and chief executive officer Thomas Karol, with another of its new acquisitions, Atlas Roofing Corporation, a producer of commercial and residential roofing materials, the statement said. Carlyle teamed with Hood Companies, a maker of plastic foam products based in Hattiesburg, Mississippi and the parent company of Atlas, in this investment. In merging the two companies, Carlyle hopes to create “ a leading player in both residential and commercial roofing,” the statement said.