ElkCorp, a manufacturer of roofing and building products, said Monday it will be acquired and taken private by private equity firm The Carlyle Group in an all-cash transaction valued at about $1 billion, including the assumption of $173 million of debt.
Separately, Carlyle has agreed to partner with Hood Companies and its Atlas Roofing subsidiary, a manufacturer of commercial roofing products as well as residential roofing materials. Financial terms of that deal were not disclosed.
Following the closing of the Elk transaction, Carlyle expects to merge Elk and Atlas, creating a player in both residential and commercial roofing. However, completion of the Elk transaction is not contingent upon completion of the Hood/Atlas transaction.
Thomas D. Karol, Chairman and Chief Executive Officer of ElkCorp, said, "Following a comprehensive evaluation process, which included reviewing a number of offers from interested third parties, the board and management concluded that Carlyle's offer was the best way to deliver maximum value to our shareholders. We are eager to work with Carlyle to grow our business and see the combination with Atlas as a tremendous opportunity to expand both companies. Looking to the future, our customers should rest assured that quality and innovation will remain the cornerstone of our company."
The Elk transaction is expected to be completed by the first quarter of 2007, and is subject to shareholder approval, regulatory approvals, and customary closing conditions.
