Beacon Roofing Supply to Acquire Allied Building Products

Beacon Roofing Supply Inc. announced that the company has entered into an agreement to acquire Allied Building Products Corp. Beacon will purchase Allied from global diversified building products group CRH for $2.625 billion in cash.

Headquartered in Herndon, Va., Beacon is a distributor of residential and non-residential roofing and complementary building products, and the company currently has more than 380 locations in 48 states and six Canadian provinces.

Allied is headquartered in East Rutherford, N.J., and distributes products across 208 locations in 31 states. The company distributes exterior products, such as roofing, siding, windows and doors, and interior products, such as wallboard and suspended ceiling systems.

According to Beacon, 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 six provinces across Canada.

Beacon will also become the fourth largest wallboard and acoustical ceiling tile wholesale distributor in the United States, with more than $1 billion of revenue in the interior market category. Beacon and Allied have more than 150 years of combined experience providing service excellence to customers in the building products industry.

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 the company’s position as a leader in roofing products distribution, while accelerating growth in other key product categories, including siding, windows, doors, decking, trim, waterproofing, insulation and solar.

Beacon expects to finance the acquisition with approximately $2.2 billion of debt financing, a new unsecured note and approximately $500 million of committed convertible preferred equity financing from an entity affiliated with the investment firm Clayton, Dubilier & Rice (CD&R), which in October 2015 sold Roofing Supply Group (RSG) to Beacon. The parties currently expect to consummate the transaction on or around January 2, 2018, subject to satisfaction of customary closing conditions.

Robert R. Buck, chairman of Beacon’s board of directors, stated: “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. I want to thank CRH for entrusting Beacon with the future success of Allied and its dedicated employees, who have been part of the CRH family for more than 20 years. The Allied acquisition also presents a great opportunity for CD&R to again become a major shareholder in Beacon. Today is of great significance in Beacon’s history and for the future of building products distribution.”

Paul Isabella, Beacon’s president and chief executive officer, commented: “I would like to welcome the more than 3,500 employees from Allied to the Beacon family. We are thrilled to partner with such a loyal and dedicated workforce that shares our commitment to superior customer service and high levels of performance. We are also excited to become a significant player in the robust, growing and still-consolidating interior products market. 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. This is a milestone moment in the long and successful histories of both companies.”

ATAS Hosts Meeting With Product Distributors

ATAS International welcomes product distributors from several countries to the ATAS headquarters.

ATAS International welcomes product distributors from several countries to the ATAS headquarters.

ATAS International welcomed product distributors from several countries to the ATAS headquarters in Allentown, Pa.  The guests, all of whom were ATAS product distributors, gathered for education sessions, a plant tour, and information exchanges.  ATAS continues to grow their export business and develop relationships with distributors throughout the world.

Joao DaCosta, director of international business development for ATAS, states, “We are pleased to receive our international distributors for the second biennial meeting.  The four day event has been full of collaborative ideas and enthusiastic networking.  Our guests shared their business experience with ATAS and each other, and all left with new and renewed global relationships.”
 
DaCosta, who is also a professor of international business and global supply chain at Baruch College of The City University of New York (CUNY) in New York City, sees the Greater Lehigh Valley area as a strategic location for the manufacturing industry and for continued growth in the exporting of products.

Appearing in the photo, from left to right:  Jim Bus, executive vice president of ATAS; Stew Ahman, Caribbean distributor; Dick Bus, president of ATAS; Shirley and Luke Martin, CountryTowne of Canada; Margaret and Abe Fehr, Western Metal Roofing of Canada; Stephane D’Anjou, 3R Tiles of Canada; Jonathan Ayotte, Trigo Energies of Canada; Christian Cartagena, Zigma of Chile; Claude Garand, 3R Tiles of Canada; Erick Perez, EP Group of Colombia; Carmen Gajardo, Zigma of Chile; Joao DaCosta, director of international business development for ATAS; and Valentina Cartagena, Zigma of Chile.

Roofing Supply Group Adds New Location in Plano, Texas

Roofing Supply Group LLC, a wholesale distributor of roofing supplies and related materials, has opened a new location in Plano, Texas. This new location, along with existing branches in Dallas and Fort Worth, will strategically position RSG to better serve the DFW market as a whole, including the counties of Collin, Denton and Hunt.

The Plano location will be led by Mark Holdorf, a 23-year veteran in the roofing industry, 15 of those years with RSG, who brings experience in both customer service and product knowledge. Holdorf will report directly to Frank Perella, Dallas/Fort Worth Roofing Supply branch manager, who will oversee this new location. The team is committed to continue the unsurpassed service and support to local roofing contractors and homebuilders. This location is the 13th branch in the Southwest Region under the direction of Geoff Craft, regional senior vice president.

Craft said: “We are extremely excited about our new branch in Plano, which expands our footprint in the DFW market. RSG Plano will provide contractors and builders from our northern counties of Collin, Denton and Hunt with exceptional service and products under the very capable hands of Mark and Frank. Between the two of them, we have 50 plus years of experience in the market.”

Jeff Clay, vice president Strategic Planning & Corporate Development, adds: “We are excited to continue RSG’s expansion and build off our momentum of 2013. We will continue to evaluate our existing markets, as well as those where RSG currently does not have a presence, to more thoroughly examine any opportunities that will move our expansion campaign forward via greenfields and acquisitions.”

The opening of this latest branch in Plano aligns strategically with RSG’s overall expansion initiative which includes organic growth, opening of new locations and potential acquisitions.