Beacon Announces Acquisition of Chicago Metal Supply & Fabrication

Rhea-AI Summary

Beacon (Nasdaq: BECN), a leading wholesale distributor of roofing and exterior products, has acquired Chicago Metal Supply & Fabrication, a family-owned business specializing in custom architectural sheet metal fabrication. Founded in 2011, Chicago Metal Supply serves commercial, residential, and historical restoration projects with a skilled team of artists, design experts, and technicians.

The acquisition aims to enhance Beacon's metal solutions capabilities and expand its commercial and residential metal offerings in the Chicago region. This move aligns with Beacon's strategy of driving above-market growth through footprint expansion and acquisitions. Notably, Beacon exceeded its Ambition 2025 revenue and shareholder return targets in 2023 and continues to progress towards achieving its full Ambition 2025 plan.

Positive

• Acquisition of Chicago Metal Supply & Fabrication expands Beacon's metal solutions capabilities
• Enhances Beacon's commercial and residential metal offerings in the Chicago region
• Aligns with Beacon's strategy for above-market growth through acquisitions
• Beacon exceeded its Ambition 2025 revenue and shareholder return targets in 2023

Negative

• None.

Insights

Financial Analyst

Beacon's acquisition of Chicago Metal Supply & Fabrication marks a strategic move to expand its metal solutions capabilities and strengthen its market position. This aligns with Beacon's Ambition 2025 plan, which has already seen the company surpass its revenue and shareholder return targets in 2023. The acquisition should enhance Beacon's product offerings in the Chicago area, potentially leading to increased market share and revenue growth.

While specific financial details of the acquisition weren't disclosed, it's likely to be accretive to earnings in the short to medium term. Beacon's track record of successful acquisitions and integration suggests this move could contribute positively to the company's financial performance. Investors should monitor upcoming quarterly reports for insights into the acquisition's impact on Beacon's top and bottom lines.

Market Research Analyst

This acquisition strengthens Beacon's position in the architectural sheet metal fabrication niche, a high-value segment within the construction industry. Chicago Metal Supply's expertise in custom fabrication, including historical restoration, adds a premium service offering to Beacon's portfolio. This move could help Beacon capture more high-margin projects and differentiate itself from competitors.

The expansion of Beacon's catalog and the introduction of digital platform options to Chicago Metal Supply's customers could lead to increased customer retention and acquisition. This synergy between Beacon's resources and Chicago Metal Supply's craftsmanship could create a competitive advantage in the Chicago market and potentially serve as a model for future acquisitions in other regions.

Construction Industry Expert

Beacon's acquisition of Chicago Metal Supply is a smart move in the evolving construction landscape. With the increasing focus on sustainable and aesthetically pleasing buildings, custom architectural sheet metal work is becoming more crucial. This acquisition positions Beacon to capitalize on the growing demand for specialized metalwork in both new construction and restoration projects.

The integration of Chicago Metal Supply's artisanal skills with Beacon's distribution network and digital capabilities could create a unique value proposition for architects and contractors. This could lead to higher-value contracts and improved profit margins. However, the success of this acquisition will depend on Beacon's ability to maintain the quality and craftsmanship that Chicago Metal Supply is known for while scaling operations.

HERNDON, Va.--(BUSINESS WIRE)-- Beacon (Nasdaq: BECN), the leading publicly-traded wholesale distributor specializing in roofing, waterproofing and related exterior products, announced today that it has completed the acquisition of Chicago Metal Supply & Fabrication, Inc. (“Chicago Metal Supply”) located in Chicago’s Hanson Park neighborhood.

Chicago Metal Supply (Photo: Business Wire)

Founded in 2011, Chicago Metal Supply is a family-owned business, specializing in custom architectural sheet metal fabrication. With expertise spanning commercial, residential and historical restoration, the skilled team includes artists, design experts, and technicians who utilize cutting-edge machinery to deliver visually stunning and accurate metalwork. “We are pleased to be joining forces with the Beacon team in Chicago to support our dedicated employees and long-standing customers. Expanding our catalog and bringing digital platform options will enhance our ability to deliver top quality service to customers who have trusted us for over a decade,” commented Alina Bosak, President of Chicago Metal Supply.

“The Bosak family has built a well-respected architectural sheet metal fabrication business that thrives because of their professionalism, attention to detail and imagination. They genuinely care for their customer’s projects and have great pride in the results. This acquisition is yet another example of our growing metal solutions capabilities. We heartily welcome the Chicago Metal Supply team and look forward to bolstering our commercial and residential metal offerings throughout the region with our joint skills and talent,” commented Larry Augello, Beacon’s Regional Vice President, North Central.

Beacon continues to drive above market growth via footprint expansion through acquisitions. Beacon exceeded its Ambition 2025 revenue and shareholder return targets in 2023 and continues to advance on achieving its full Ambition 2025 plan.

About Beacon

Founded in 1928, Beacon is a publicly-traded Fortune 500 company that distributes specialty building products, including roofing materials and complementary products, such as siding and waterproofing. The company operates over 570 branches throughout all 50 states in the U.S. and 7 provinces in Canada. Beacon serves an extensive base of nearly 100,000 customers, utilizing its vast branch network and service capabilities to provide high-quality products and support throughout the entire project lifecycle. Beacon offers its own private label brand, TRI-BUILT®, and has a proprietary digital account management suite, Beacon PRO+®, which allows customers to manage their businesses online. Beacon’s stock is traded on the Nasdaq Global Select Market under the ticker symbol BECN. To learn more about Beacon, please visit www.becn.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240909821984/en/

INVESTOR CONTACT

Binit Sanghvi

VP, Capital Markets and Treasurer

Binit.Sanghvi@becn.com

972-369-8005

MEDIA CONTACT

Jennifer Lewis

VP, Communications and Corporate Social Responsibility

Jennifer.Lewis@becn.com

571-752-1048

Source: Beacon

FAQ

What company did Beacon (BECN) acquire in Chicago?

Beacon (BECN) acquired Chicago Metal Supply & Fabrication, a family-owned business specializing in custom architectural sheet metal fabrication, located in Chicago's Hanson Park neighborhood.

How does the acquisition of Chicago Metal Supply benefit Beacon (BECN)?

The acquisition enhances Beacon's metal solutions capabilities, expands its commercial and residential metal offerings in the Chicago region, and supports its strategy for above-market growth through footprint expansion.

What is Chicago Metal Supply & Fabrication's specialization?

Chicago Metal Supply & Fabrication specializes in custom architectural sheet metal fabrication, serving commercial, residential, and historical restoration projects with a skilled team of artists, design experts, and technicians.

How is Beacon (BECN) performing in relation to its Ambition 2025 plan?

Beacon exceeded its Ambition 2025 revenue and shareholder return targets in 2023 and continues to make progress towards achieving its full Ambition 2025 plan.