Get Our Email Newsletter

Beacon Roofing Supply to Acquire Roofing Supply Group for $1.1 Billion

Beacon Roofing SupplyBeacon Roofing Supply, Inc., the largest publicly-traded distributor of residential and commercial roofing materials and complementary building products in the United States, today announced that it has entered into a definitive merger agreement to acquire Roofing Supply Group, a leading roofing products distributor owned by investment firm Clayton, Dubilier & Rice, in a cash and stock transaction valued at approximately $1.1 billion.

Beacon shares surged as much as 16 percent, the biggest intraday move since October 2008. They were up 11 percent to $33.31 at 9:38 a.m. in New York. They had risen 8.2 percent this year through Friday, reports BloomburgBusiness.

In a press release Monday, Beacon Roofing Supply said that under the terms of the agreement, RSG shareholders will receive approximately $286 million in cash and $291 million of Beacon common stock, and Beacon will refinance approximately $565 million of RSG’s net debt. Beacon will fund the cash portion of the purchase price through a new ABL Revolver, Term Loan B and a senior unsecured bond offering. The transaction is targeted to close on October 1, 2015.

LBM Resources

Griffin Lumber Improves Takeoff and Estimating Times

Griffin Lumber Improves Takeoff and Estimating Times with Scalable Pipeline Software from Simpson Strong-Tie.

Reuters reports the deal will increase Beacon’s revenue to about $3.7 billion and give the company greater access to 45 states and six provinces across Canada, it said. Beacon reported revenue of $2.33 billion in 2014.

The acquisition of Roofing Supply, which has presence in 24 U.S. states, provides Beacon access to the Pacific Northwest, Reuters added.  The deal will boost Beacon’s presence in California by 75 percent and in Texas and Florida by as much as 50 percent, the company said.

Get our free newsletter

Join thousands of other lumber and building material industry leaders and keep up with the companies, people, products and issues shaping the industry.

What's New

Digital Partners

Become a digital partner ...

Sales Comp Study

Download this 55-page, in-depth study by LBM Journal of industry trends in sales force compensation and benefits. See how your organization stacks up.

Webinars

- Advertisement -

White Papers

View all ...

- Advertisement -

Partner Content

View all ...

- Advertisement -