Private Equity News & Analysis

Carlyle raises bid for roofing company

The global private equity firm has increased its offer for ElkCorp to about $1.05 billion as it plans to merge the company with roofing materials manufacturer Atlas Roofing Corporation.

By
Sushil Cheema
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The global private equity firm has increased its offer for ElkCorp to about $1.05 billion as it plans to merge the company with roofing materials manufacturer Atlas Roofing Corporation.

The Carlyle Group has increased its bid for roofing and building products manufacturer ElkCorp, the company said.

The new offer will give shareholders $40.50 in cash per share, up from the original offer of $38 per share last month. The total transaction value, originally $1 billion, is now worth about $1.05 billion.

Based in Dallas, Texas, ElkCorp said its board has advised shareholders to reject a $40 per share offer from Building Materials Corporation of America, a roofing products manufacturer based in New Jersey. That offer totaled about $824 million.

“The company last week rejected [Building Materials’] offer, saying it was ‘excessively conditional’ and lacked the appropriate financing,” ElkCorp said in a statement.

Should it acquire ElkCorp, Carlyle plans to merge the company with another of its recent acquisitions, Atlas Roofing Corporation, a producer of commercial and residential roofing materials, Carlyle said in December.