Beacon Roofing Supply to buy Roofing Supply Group in $1.1-bn deal
27 Jul 2015
Beacon Roofing Supply Inc today struck a deal to buy roofing products distributor Roofing Supply Group (RSG) from private equity firm Clayton, Dubilier & Rice in a $1.1 billion deal.
Under the terms of the transaction, 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 total debt.
Based in Dallas, Texas, RSG distributes roofing supplies and related materials from 83 locations across 24 states, including the key Western and Southern markets of California, Florida, and Texas.
As a result of the acquisition, Beacon said that it will grow to approximately $3.7 billion in revenues and have 356 branches in 45 states and six provinces across Canada.
Robert R. Buck, chairman of Beacon said, "RSG complements Beacon geographically, especially in the Southern and Western United States, and RSG's management shares Beacon's belief that success comes from dedication and loyalty to customers and employees."
Paul Isabella, Beacon's president and CEO, said, "By building on these relationships, Beacon will drive strong growth, bolster our existing customer base and enhance our position across key regions in the South, West and the Pacific Northwest."
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