Beacon Roofing Supply buys out competitor

Beacon Roofing Supply announced that it has acquired Roofing Supply Group for $1.1 billion. Some benefits gained in the deal include $286 million worth of cash and $291 million of Beacon common stock to the shareholders of Dallas-based RSG, and a refinancing of $565 million of RSG’s debt. These would lead to an increase in Beacon’s revenues by $3.7 billion.

RSG is owned by investment firm Clayton, Dubilier & Rice with more than 80 locations in 24 states, such as Florida, Texas, California and Seattle.

According to Beacon chairman Robert Buck in a press release, the roofing products distributor will augment the presence of Beacon in the Southern and Western US.

The deal is expected to close in early October 2015.