Beacon accelerates share repurchase plan

Beacon, the roofing and building products distributor, has entered an accelerated share repurchase agreement (ASR) with Citibank N.A 

Under the terms of the agreement, Beacon will repurchase $125 million of its common stock. The ASR accelerates Beacon’s progress under the company’s $500 million share repurchase program announced Feb. 24.

“Accelerating our share repurchase program affirms our commitment to delivering value to stockholders through disciplined capital allocation,” said Julian Francis, president and CEO of Beacon. “This ASR demonstrates our significant confidence in the Ambition 2025 strategic plan outlined during our recent Investor Day.”

Under the ASR, Beacon will make a pre-payment of $125 million to Citibank, N.A and will initially receive a prorated quantity of the company's common stock on March 15. 

The final number of shares to be repurchased will be based on the daily volume-weighted average price of Beacon’s common stock during the term of the ASR, less a discount and subject to adjustments pursuant to the terms of the ASR. 

The final settlement of the ASR is expected to be completed in the second quarter of 2022.

Based in Herndon, Va., Beacon operates more than 400 branches in the United States and Canada.