Beacon announced that it is selling its interior products business to affiliates of American Securities LLC in an $850 million deal.
American Securities is a private equity firm and the sale includes 81 branch locations, which distribute wallboard, acoustical ceilings, steel framing and insulation to both residential and commercial contractors.
This is the second major deal for American Securities in as many months. In November, American Securities acquired Foundation Building Materials. That deal includes 170 branches.
American Securities said that it now intends to combine the acquired Beacon branches with Foundation Building Materials.
Based in Herndon, Va., Beacon operated more than 500 locations in the United States and Canada prior to the sale of its interior products business.
The transaction is expected to close in the second quarter of 2021. Beacon said it will use the after-tax proceeds of approximately $750 million to reduce debt and strengthen its balance sheet.
“Today’s announcement represents an important strategic decision for Beacon,” said Julian Francis, Beacon president and CEO “After undertaking a thorough analysis, we determined that a divestiture of interior products is in the best interests of our shareholders, as well as our interiors customers and associates.”