Beacon to acquire Allied Building Products
Beacon Roofing Supply, the largest publicly traded distributor of roofing and complementary building products in North America, will acquire Allied Building Products Corp. for $2.625 billion in cash.
East Rutherford, N.J.-based Allied, owned by the global diversified building products group CRH plc, is one of the country’s largest exterior and interior building products distributors.
The combination of Beacon and Allied will make Beacon one of the largest publicly traded wholesale building materials distributors in North America with pro forma revenues of approximately $7 billion and 593 branches in all 50 states and 6 provinces across Canada.
Robert R. Buck, chairman of Beacon’s Board of Directors, described the acquisition as an historic day for building products distribution. “Allied is among the most established and respected companies in our industry, and we are proud that, through this acquisition, Beacon will become one of North America’s largest publicly traded building materials distributors and will operate locations in all 50 states.
The expanded geographic footprint will allow Beacon to enter new local markets, particularly in New York, New Jersey and the upper Midwest. In addition, acquiring Allied allows Beacon to further strengthen its position in roofing products distribution, while accelerating growth in other key product categories, including siding, windows, doors, decking, trim, waterproofing, insulation and solar, the company said.
Beacon expects to finance the acquisition with approximately $2.2 billion of debt financing
The interior products market, into which Beacon injects itself through this deal, was described by Beacon President and CEO Paul Isabella as “robust, growing and still-consolidating.” Isabella added: “Together, we will leverage the strengths of both companies, while remaining committed to preserving the deep customer relationships that we have each cultivated over 150 years of combined experience.”
The parties currently expect to consummate the transaction on or around January 2, 2018, subject to satisfaction of customary closing conditions.
Founded in 1950, Allied is headquartered in East Rutherford, New Jersey, and distributes products across 208 locations in 31 states.