Beacon Roofing Supply Inc., the largest publicly traded distributor of roofing and complementary building products in North America, has entered into a definitive purchase agreement to acquire Allied Building Products Corp., one of the country’s largest exterior and interior building products distributors, from global building products group CRH for $2.625 billion in cash.

Founded in 1950, Allied is headquartered in East Rutherford, N.J., and distributes products across 208 locations in 31 states. These include exterior products such as, metal, skylights, doors and windows, roofing and siding, and interior products such as wallboard and suspended ceiling systems. The combination of Beacon and Allied will create a huge wholesale building materials distributor for North America with revenues of approximately $7 billion and 593 branches in all 50 states and six provinces across Canada.

The expanded geographic footprint will allow Beacon to enter new local markets, particularly in New York, New Jersey and the upper Midwest. In addition, acquiring Allied allows Beacon to accelerate growth in other key product categories, including doors, windows, siding, decking, trim, waterproofing, insulation and solar.

Allied’s 3,500 employees will join Beacon’s workforce of more than 5,000. The transaction is expected to close on or around January 2, 2018.