© Reuters.
HERNDON, Va. – Beacon (NASDAQ:BECN), a Fortune 500 distributor of building products, announced the completion of its acquisition of Roofers Supply, a company with a significant presence in commercial roofing across the Southeast. The acquisition includes Roofers Supply’s headquarters in Greenville, SC, and branches in Charlotte, NC, and Raleigh, NC.
The transaction, which marks Beacon’s first acquisition in 2024, aligns with the company’s strategy to drive above-market growth and achieve its Ambition 2025 targets. In 2023, Beacon completed nine acquisitions and exceeded its revenue and shareholder return goals.
Chris Causey, President of Roofers Supply, expressed enthusiasm about joining Beacon, highlighting the benefits for contractors and employees through the combined expertise and resources. Munroe Best, Beacon’s Division President, South, emphasized the strategic growth in service geography and design services this acquisition brings to the Carolinas, particularly for commercial roofers.
Beacon, established in 1928, operates over 530 branches across the U.S. and Canada and serves nearly 100,000 customers. The company provides roofing materials and complementary products, such as siding and waterproofing, and offers its own private label brand, TRI-BUILT®. Beacon also features a proprietary digital account management suite, Beacon PRO+, which facilitates online business management for customers.
The acquisition is part of Beacon’s ongoing effort to become the top commercial roofing distributor in North America. The company’s stock is traded on the Nasdaq Global Select Market.
This expansion is expected to leverage Roofers Supply’s technical knowledge, product range, and service reliability to foster growth for both existing and new customers in the region. The information in this article is based on a press release statement.
InvestingPro Insights
As Beacon (NASDAQ:BECN) continues its ambitious growth strategy with the acquisition of Roofers Supply, investors and analysts are taking note. Recent revisions by 7 analysts have indicated a positive outlook, with earnings expectations for the upcoming period being revised upwards. This aligns with Beacon’s strong history of return over the last five years, suggesting a track record of effective growth and investment strategies.
Investors should be aware of the company’s current market capitalization, which stands at $5.24 billion. While Beacon’s P/E ratio remains negative, at -82.77, indicating it was not profitable over the last twelve months, analysts predict a turnaround with the company expected to be profitable this year. This could be a sign of the company’s resilience and potential for growth, particularly as it integrates Roofers Supply into its operations.
Additionally, Beacon’s liquid assets surpass its short-term obligations, providing a cushion that could support ongoing investments and operational needs. The company’s stock price movements have been quite volatile, which may present opportunities for investors who are able to navigate market fluctuations effectively.
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