Beacon Roofing Supply Inc., an U.S. supplier of building materials, agreed to buy Roofing Supply Group for $1.1 billion from buyout firm Clayton, Dubilier & Rice to expand its offerings in California, Florida and Texas.

Beacon will pay $286 million in cash and give Roofing Supply’s shareholders $291 million of its common stock, the company said in a statement Monday. Beacon will also refinance about $565 million of Roofing Supply’s debt, it said.

“Roofing Supply complements Beacon geographically, especially in the southern and western United States,” said Beacon Chairman Robert Buck. “This is a momentous event for these two great companies and for the future of the roofing distribution industry.”

Beacon is one of the largest distributors of residential and non-residential roofing and complementary building products in North America. As a result of the acquisition, Beacon will have about $3.7 billion in annual revenues and 356 branches.

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