Beacon Roofing Pays $2.63 Billion for CRH's U.S. Distribution Business
August 24 2017 - 4:57AM
Dow Jones News
By Tapan Panchal
Beacon Roofing Supply Inc. has agreed to acquire Allied Building
Products Corp. from Irish firm CRH PLC for $2.63 billion in cash, a
deal that will expand its footprint to New York and double its
size.
Beacon, a distributor of roofing materials with a market value
of $2.4 billion, said the deal will make it one of the industry's
largest publicly traded firms in North America, with a presence in
all 50 states and annual revenue of $7 billion. It will finance the
acquisition largely with debt.
The deal, announced by Beacon and CRH in separate statements
Thursday, ramps up the Virginia-based company's North American
expansion, allowing it to enter new local markets, particularly in
New York, New Jersey and the upper Midwest.
In 2015, Beacon bought Roofing Supply Group from investment firm
Clayton, Dubilier & Rice for $1.1 billion, giving it access to
the Pacific Northwest.
The deal comes as U.S. President Donald Trump's administration
is mapping out a $1 trillion infrastructure spending plan, designed
partly to bolster industries such as construction, though the
administration hasn't issued a detailed proposal.
"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," said Beacon Chief Executive Paul
Isabella.
CRH--which supplies materials to the construction industry--said
it would use the proceeds from the divestment to acquire German
lime and aggregates business Fels for around EUR600 million ($706.5
million).
Founded in 1950, Allied is based in East Rutherford, New Jersey,
and distributes products across 208 locations in 31 states, with
3,500 employees.
Beacon said it expects the deal to be completed in January
2018.
Write to Tapan Panchal at Tapan.Panchal@wsj.com
(END) Dow Jones Newswires
August 24, 2017 04:42 ET (08:42 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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