Beacon Roofing To Buy Roofing Products Distributor In a $1.1 Billion Deal

Beacon Roofing Supply Inc. announced on Monday a deal to buy Roofing Supply Group in a deal valued at $1.1 billion, including debt. Beacon will pay $286 million in cash and $291 million worth of its common stock to buy the roofing products distributor from Clayton, Dubilier & Rice. Beacon expects the deal, which is expected to close on Oct. 1, to immediately add to its earnings, and to generate annual synergies of $50 million. Beacon's stock, which is still inactive in premarket trade, has run up 8.2% year to date, while the S&P 500 has gained 1%.