Beacon moving ahead with sale of interior business

Beacon reported that it has been given early regulation clearance in regard to the sale of its interior products business.

The Herndon, Va. company said it has already received a termination of the waiting period required under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR) in connection with the divestiture of its interior products business. 

On Dec. 21, Beacon announced that it had entered into an agreement to sell the interior products business to affiliates of American Securities LLC, a U.S. private equity firm, for the cash purchase price of $850 million.

The sale includes 81 branch locations, which distribute wallboard, acoustical ceilings, steel framing and insulation to both residential and commercial contractors.

According to Beacon, the transaction is expected to close during the company’s fiscal 2021 second quarter, subject to customary closing conditions as set forth in the definitive agreement.

“We remain on schedule to close the transaction during our fiscal second quarter,” said Julian Francis, Beacon CEO and president. “For our Interiors customers and employees, this is an exciting opportunity to be paired with an industry leader who makes customer service its highest priority. For Beacon, the transaction represents an important strategic step that will sharpen our focus on driving growth and operational improvement in our core exteriors business and greatly accelerate our balance sheet improvement efforts.”

Beacon distributes roofing materials and complementary building products through more than 500 locations in the United States and Canada. 

Based in New York, American Securities acquired Foundation Building Materials last November. That move included more 170 branches in the United States and Canada, with a focus on distributing wallboard, suspended ceiling systems, metal framing, and complementary products.