Beacon to buy Roofing Supply Group in $1.1 bln deal: Reuters

(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.