Beacon Roofing Supply to acquire Allied Building Products for $2.6 billion
Beacon Roofing Supply Inc. in Herndon said Thursday that it plans to acquire Allied Building Products Corp., one of the country’s largest building products distributors, from global diversified building products group CRH plc for $2.62 billion in cash.
Beacon said the move to buy New Jersey-based Allied will allow it to enter new markets, including New York, New Jersey and the upper Midwest.
In addition, Beacon — the largest publicly traded distributor of roofing and complementary building products in North America — says the move will strengthen its position as a leader in roofing products distribution, while accelerating growth in other product categories.
“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,” Robert R. Buck, chairman of Beacon’s board of directors, said in a statement.
Beacon expects to finance the acquisition with about $2.2 billion in debt financing. The companies expect to close the transaction on or around Jan. 2, subject to customary closing conditions.
Founded in 1950, Allied is based in East Rutherford, N.J. It has more than 3,500 employees and distributes products from 208 locations in 31 states. These products include roofing, siding, windows and doors, and interior products such as wallboard and suspended ceiling systems.
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 about $7 billion and 593 branches in all 50 states and six provinces in Canada.
Beacon said it also would become the fourth largest wallboard and acoustical ceiling tile wholesale distributor in the U.S., with more than $1 billion of revenue in the interior market category.
Following completion of the transaction, Paul Isabella, Beacon’s president and CEO, will continue to serve in these roles for the combined company.
Buck will remain chairman of the board of directors. Bob Feury Jr., CEO of Allied, will continue in a key executive leadership role, focused on integration and growth, reporting to Isabella.