Carlyle Group to buy roofing firm ElkCorp

Carlyle Group agreed to acquire ElkCorp for $1 billion including debt and said it would merge the maker of roofing and building products with a rival company to weather a weak U.S. housing market.

Shareholders of Dallas-based ElkCorp would receive $38 in cash for each of their shares, 51% more than the closing price Nov. 3, the day the company announced it was considering a sale.

Carlyle said in a separate statement that it would combine ElkCorp with Atlas Roofing Corp., a subsidiary of Hood Cos.

ElkCorp’s stock rose $2.96, to $38.81.