By Lisa Kerner
Charlotte, N.C., Feb. 9 - ElkCorp said Building Materials Corp. of America will amend its existing offer whereby its affiliate BMCA Acquisition Sub Inc. will acquire all of the outstanding common stock of ElkCorp for $43.50 per share in a cash tender offer extended through Feb. 21.
The $43.50 per share price values ElkCorp at approximately $1.12 billion, including the assumption of approximately $173 million of net debt, according to a company news release.
BMCA received financing commitments from Deutsche Bank AG, Bear, Stearns & Co. and JPMorgan Chase Bank NA.
In a second-step merger following the tender offer, all remaining outstanding shares of ElkCorp will be cancelled and converted into $43.50 cash per share, without interest.
ElkCorp terminated a previous merger agreement with affiliates of The Carlyle Group, a private equity company.
Dallas-based ElkCorp, through its subsidiaries, manufactures Elk brand roofing and building products.
Building Materials Corp. is a Dallas roofing manufacturer.
| Acquirer: | Building Materials Corp. of America
|
| Target: | ElkCorp
|
| Payment per share | $43.50
|
| Announcement date: | Feb. 9
|
| Expected closing: | Feb. 21
|
| Stock price for target: | NYSE: ELK; $43.42 on Feb. 9
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
