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.

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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.