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Roofing News

Elk Completes Acquisition of RGM Products

October 1, 2005
DALLAS-ElkCorp's subsidiary company Elk Premium Building Products Inc. announced it has completed the acquisition of RGM Products Inc., a privately held manufacturer of high profile hip and ridge and other high-quality roofing related products based in Fresno, Calif., for approximately $35 million. The company intends to continue operations at the RGM manufacturing facilities in Fresno.

DALLAS-ElkCorp's subsidiary company Elk Premium Building Products Inc. announced it has completed the acquisition of RGM Products Inc., a privately held manufacturer of high profile hip and ridge and other high-quality roofing related products based in Fresno, Calif., for approximately $35 million. The company intends to continue operations at the RGM manufacturing facilities in Fresno.

"This acquisition is in line with our strategy to acquire companies that enhance our current product platforms and assist us in providing our customers with a more complete offering of high-quality building products," said Thomas Karol, chairman and chief executive officer of ElkCorp. "The RGM product line is synergistic with our current roofing lines and allows us to expand our ridge and accessory products substantially. We believe this is an excellent enhancement to our roofing platform and will assist us in continuing to grow this platform for the future. RGM posted 2004 revenues of $57 million. We expect the acquisition to be moderately accretive to fiscal 2006 earnings per share but anticipate a greater impact on EPS in the coming years."

"We are pleased to welcome RGM to the Elk family," said Richard A. Nowak, president and chief operating officer of ElkCorp. "What made RGM appealing to us is not only do they have outstanding products, but their entire staff is committed to providing customers with products known for their quality, reliability and customer service. That's exactly what we want in an acquisition-people and products that exemplify the Elk reputation for quality and reliability that our customers have come to expect from Elk products."

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