Beacon Roofing Supply completes Allied acquisition
Beacon Roofing Supply, the Herndon, Va.-based roofing and building materials distributor, has completed its acquisition of Allied Building Products Corp.
In a press release, Beacon said the acquisition “further strengthens Beacon’s position as one of the largest publicly traded wholesale building materials distributors in the United States and Canada, with approximately $7 billion in revenue and 589 branches throughout all 50 states and six provinces in Canada.”
The deal was first announced last August with Beacon paying more than $2.62 billion in cash for Allied.
Beacon now becomes the fourth-largest wallboard and acoustical ceiling tile wholesale distributor in the nation, with more than $1 billion of revenue in the interior market category. The Allied acquisition also expands Beacon’s geographic footprint in New York, New Jersey and the upper Midwest, among other major U.S. markets.
“We are pleased to announce the completion of the Allied acquisition and we look forward to the successful integration of these two great companies,” said Paul Isabella, president and CEO of Beacon. “Beacon and Allied’s leadership have worked closely together on the integration planning to ensure a collaborative approach and an outcome that preserves the expertise and strengths of both organizations.”
In connection with the Allied acquisition, a fund managed by Clayton, Dubilier & Rice invested $400 million in Beacon and Nathan Sleeper, a CD&R partner, was appointed to Beacon’s board of directors, effective immediately. Sleeper previously was a member of Beacon’s board of directors from October 2015 through May 2016 in connection with Beacon’s previous acquisition of Roofing Supply Group from a fund managed by CD&R.
Robert R. Buck, chairman of Beacon’s board of directors, added: “Together, Beacon and Allied will have more than 150 years of combined experience providing service excellence in the building products industry. Having this unique opportunity to combine two great companies of this magnitude is a testament to the dedication and hard work of the people across both organizations.”
Last November, Beacon Roofing Supply reported fourth quarter 2017 net sales increased 9.8% to a company record of $1.29 billion, up from $1.17 billion in the fourth quarter of 2016. On the year as a whole, total sales increased 6% to an annual company record of $4.38 billion in 2017, from $4.13 billion in 2016.
BPI expanding into Wisconsin
Building Products Inc. is opening a new branch in Watertown, Wis.
In a press release, the distributor said the new location will help the company service current companies while expanding its coverage area. Based in Watertown, S.D., BPI also maintains distribution locations in Council Bluffs and Evansdale, Iowa; Sioux Falls, S.D.; and Fargo, N.D.
The Watertown location will distribute building materials in addition to exterior doors. A grand opening is planned for first quarter 2018.
“It is a very exciting time at BPI as we continue to grow and remain a strong supplier for our customers,” the company said in a prepared statement.
BPI’s operations also include a South Dakota millwork branch in Sioux Falls, which distributes a broad range of doors, windows and related millwork products to dealers throughout the Midwest.
MRS adds James Hardie to its mix
Irvington, N.J.-based Wholesale distributor Manufacturers Reserve Supply has formed a partnership with James Hardie Building Products. Under the deal, MRS will offer the company’s siding, trim and backer board to its customers in 2018.
“Partnering with America’s No. 1 brand of siding helps us to achieve that vision,” said Brian Boyd, general manager and fourth generation of Manufacturers Reserve Supply.
“We’ve been serving the industry for more than 85 years now and delivering James Hardie products will only help build our already vast selection of products for our customers,” said Brian Boyd, general manager, of MRS.
The partnership will give customers access to James Hardie products, which are available primed or in 25 shades of James Hardie ColorPlus Technology colors in the Northeast market. ColorPlus Technology combines durability and beauty to create a lasting exterior product with baked-on color that resists chipping, cracking and peeling, according to the press release announcing the deal.
“MRS and James Hardie share a common goal of providing customers with extraordinary service and value,” said Rob Reber, strategic accounts manager for James Hardie. “Together we will continue that mission and deliver products that make it easier for builders and contractors to create projects that are as unique as they are durable.”
Established in 1931, MRS's name originated from reserving materials from manufacturers for its customers. The distributor services New Jersey, New York, Pennsylvania, Delaware and Connecticut.