(Reuters) Beacon Roofing Supply Inc will buy roofing products distributor Roofing Supply Group in a deal valued at about $1.1 billion, to expand in key housing markets of California, Florida and Texas.
Beacon, which has a market value of about $1.5 billion, will acquire Roofing Supply from investment firm Clayton, Dubilier & Rice.
The deal will increase Beacon’s revenue to about $3.7 billion and give the company access to 45 states and six provinces across Canada, it said. Beacon reported revenue of $2.33 billion in 2014.
Dallas-based Roofing Supply has presence in 24 U.S. states.
The transaction is expected to add immediately to adjusted earnings, Herndon, Virginia-based Beacon said.
Roofing Supply shareholders will receive about $286 million in cash and $291 million of Beacon common stock, and Beacon will refinance about $565 million of Roofing Supply’s net debt.
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