Beacon, the roofing and exterior building products distributor, reported that it has completed the sale of its interior products and insulation businesses.
Under terms of the final deal, the interior products business has been sold to Foundation Building Materials (FBM), which is majority-owned by affiliates of equity firm American Securities LLC.
The cash price of the sale is $850 million, subject to net working capital and additional adjustments, Beacon said. The deal includes about 80 Beacon locations.
This move follows American Securities’ $1.37 billion acquisition of FBM, announced last November.
According to Beacon, the divestiture of its interior products business will accelerate the company’s goal of financial flexibility and additional growth in its core exteriors business. Beacon said that it plans to use about $750 million from the sale to reduce debt, strengthen its balance sheet and invest in growth.
“Finalizing the sale of interior products represents a transformational event for our company,” said Julian Francis, Beacon president and CEO.