Virginia-based Beacon Roofing Supply Inc. announced that the company has entered into a definitive purchase agreement to acquire Allied Building Products Corp. for $2.625 billion in cash, as reported in BusinessWire.com.

Beacon expects to finance the acquisition with approximately $2.2 billion of debt financing through an upsized ABL revolving credit facility, an upsized term loan B facility, a new unsecured senior note and approximately $500 million of committed convertible preferred equity financing from an entity affiliated with the investment firm Clayton, Dubilier & Rice, which in October 2015 sold Roofing Supply Group to Beacon. The parties currently expect to consummate the transaction on or around January 2, 2018, subject to satisfaction of customary closing conditions.