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.
No comments found