By Lisa Kerner
Charlotte, N.C., Jan. 30 - ElkCorp received an irrevocable, binding offer from Building Materials Corp. of America and agreed for its affiliate, BMCA Acquisition Sub Inc., to acquire all of the outstanding common stock of ElkCorp for $43.50 per share.
ElkCorp's board of directors determined that the Building Materials' offer is superior to The Carlyle Group's tender offer of $42.00 per share.
As a result, ElkCorp notified Carlyle of its intent to terminate the merger agreement between the two companies. The Dallas-based roofing and building products manufacturer will pay Carlyle a termination fee of $29 million if no counter proposal is accepted, according to a company news release.
Building Materials, which does business as GAF Materials Corp., is a roof manufacturer based in Wayne, N.J.
| Acquirer: | Building Materials Corp. of America
|
| Target: | ElkCorp
|
| Payment per share: | $43.50
|
| Announcement date: | Jan. 23
|
| Tender deadline: | Feb. 14
|
| Stock price for target: | NYSE: ELK; $43.57 on Jan. 30
|
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