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AltAssets is the private equity news and research service from Almeida Capital
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PRINT THIS PAGE Carlyle to acquire ElkCorp in $1bn transaction19/12/2006. Source: AltAssets. 
The Carlyle Group has agreed to acquire ElkCorp, a manufacturer of premium roofing and building products, in an all-cash transaction valued at approximately $1bn, including the assumption of approximately $173m of net debt. Under the terms of the agreement, ElkCorp shareholders will receive $38 in cash for each outstanding ElkCorp share, representing a premium of approximately 51 per cent over the closing share price on 3 November 2006, the last trading day before ElkCorp announced that its board of directors and management were conducting a review of the company's strategic alternatives, according to a statement.
ElkCorp's board of directors has approved the agreement and has recommended that shareholders vote in favour of the transaction.
In a separate agreement, Carlyle has agreed to partner with Hood Companies and its subsidiary Atlas Roofing Corporation, a manufacturer of commercial roofing products and residential roofing materials. Financial terms of this transaction were not disclosed.
Following the closing of the Elk transaction, Carlyle expects to merge Elk and Atlas, the firm said. However, Carlyle stressed that completion of the Elk transaction would not be contingent upon completion of the Hood/Atlas transaction.
Carlyle has $46.9bn under management. The Group employs approximately 740 people in 16 countries.
Copyright © 2006 AltAssets
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