Beacon Roofing Supply Completes Acquisition of Allied Building Products

Beacon Roofing Supply Inc. announced the successful completion of its previously announced acquisition of Allied Building Products Corp. from global diversified building products group CRH plc. Completion of the Allied acquisition further strengthens Beacon’s position as one of the largest publicly traded wholesale building materials distributors in the United States and Canada, notes the company, with approximately $7 billion in revenue and 589 branches throughout all 50 states and 6 provinces in Canada.

According to the company, Beacon also becomes 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. The Allied acquisition also significantly expands Beacon’s geographic footprint in New York, New Jersey, the Upper Midwest and other major U.S. markets.

Paul Isabella, president and CEO of Beacon, stated, “We are pleased to announce the completion of the Allied acquisition and we look forward to the successful integration of these two great companies. Beacon and Allied’s leadership have worked closely together on the integration planning to ensure a collaborative approach and an outcome that preserves the expertise and strengths of both organizations. I want to thank the Beacon and Allied teams for their tireless work and cooperation to successfully complete the financing and closing processes efficiently and on schedule. This combination is about driving growth through the expansion of our geographic footprint and range of products and creating increased value for our customers and shareholders. This is a milestone day in the long and successful histories of both companies and we are thrilled to start the new year as one company.”

In connection with the Allied acquisition, a fund managed by Clayton, Dubilier & Rice (CD&R), invested $400 million in Beacon and Nathan Sleeper, a CD&R partner, was appointed to Beacon’s Board of Directors, effective immediately. Sleeper previously was a member of Beacon’s Board of Directors from October 2015 through May 2016 in connection with Beacon’s previous acquisition of Roofing Supply Group (RSG) from a fund managed by CD&R.

Robert R. Buck, chairman of Beacon’s Board of Directors, added, “Together, Beacon and Allied will have more than 150 years of combined experience providing service excellence in the building products industry. Having this unique opportunity to combine two great companies of this magnitude is a testament to the dedication and hard work of the people across both organizations. I also am pleased to welcome Nate Sleeper back to our Board of Directors. His deep industrial sector expertise and leadership will prove to be extremely valuable as we continue moving our growth strategy forward.”

According to the company, the Allied acquisition provides significant strategic and financial benefits:

• Expanded exteriors geographic footprint:The expanded geographic footprint provides Beacon a presence in new markets — particularly inNew York, New Jersey and 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, Colorado and 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 million in annual run-rate synergies within two years of closing.

For more information, visit www.beaconroofingsupply.com.