Beacon Roofing Supply Completes Its Acquisition of Allied Building Products
Completion of the Allied acquisition further strengthens Beacon's
position as one of the largest publicly traded wholesale building
materials distributors in
In connection with the Allied acquisition, a fund managed by Clayton,
Dubilier & Rice ("CD&R"), invested
The Allied acquisition provides significant strategic and financial benefits:
Expanded Exteriors Geographic Footprint: The expanded
geographic footprint provides Beacon a presence in new markets -
New York, New Jerseyand the Upper Midwest. With this transaction, Beacon will operate locations in all 50 states and will expand its presence in other key markets including Texas, Florida, Coloradoand California.
- Expansion into the Interior Business: The combination provides Beacon with entry into the adjacent interior business, including wallboard and suspended ceiling products, and strengthens the combined company's competitive positioning through extended product offerings. The interior category shares many attractive investment qualities and characteristics with the roofing products distribution business.
- Enhanced Growth Strategies: Beacon remains committed to increasing market share through organic growth focusing on a wide range of roofing and complementary products. Through the combination, Beacon will be well-positioned to leverage Allied's various market advantages, including its established private-label business and robust e-commerce platform, to further Beacon's organic growth strategies.
Significant Cost Synergies Expected: The combined company is
expected to realize
$110 millionin annual run-rate synergies within two years of closing.
This release contains information about management's view of Beacon's future expectations, plans, and prospects that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by the fact that they do not relate strictly to historic or current facts and often use words such as "anticipate", "estimate", "expect", "believe", "will likely result", "outlook", "project" and other words and expressions of similar meaning. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including, but not limited to, those set forth in the "Risk Factors" section of Beacon's latest Form 10-K. In addition, numerous factors could cause actual results with respect to the Allied acquisition to differ materially from those in the forward-looking statements, including without limitation, the possibility that the expected synergies and cost savings and financial impacts from the Allied acquisition will not be realized, or will not be realized within the expected time period; the risk that the Beacon and Allied businesses will not be integrated successfully; disruption from the Allied acquisition making it more difficult to maintain business and operational relationships and the risk of customer attrition. The forward-looking statements included in this press release represent Beacon's views as of the date of this press release and these views could change. However, while Beacon may elect to update these forward-looking statements at some point, Beacon specifically disclaims any obligation to do so, other than as required by federal securities laws. These forward-looking statements should not be relied upon as representing Beacon's views as of any date subsequent to the date of this press release.
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