Beacon Announces Acquisition of Crabtree Siding and Supply

Rhea-AI Summary

Beacon (Nasdaq: BECN) has announced the acquisition of Crabtree Siding and Supply, effective January 1, 2022. This strategic move aims to enhance Beacon's distribution capabilities in Tennessee, particularly in the underserved area between Nashville and Knoxville. Crabtree, known for its strong reputation, generates annual sales of approximately $1 million. The acquisition is expected to bolster customer service and supplier relationships, contributing to Beacon's expansion in the market.

Positive

• Acquisition of Crabtree Siding and Supply enhances Beacon's distribution network in Tennessee.
• Crabtree's annual sales of approximately $1 million contribute positively to revenue.
• Strong reputation for customer service and supplier relationships strengthens Beacon's market position.

Negative

• None.

Strengthens Building Materials Distribution in Tennessee

HERNDON, Va.--(BUSINESS WIRE)-- Beacon (Nasdaq: BECN) (the “Company”) announced today the acquisition, effective January 1, 2022, of Crabtree Siding and Supply (“Crabtree”), a wholesale distributor of residential exterior building materials, including a broad offering of complementary products, to contractors and homebuilder customers. Crabtree has built a strong reputation for long-term mutually beneficial relationships with customers and suppliers, reaching annual sales of approximately $1 million. Their Cookeville, Tenn. location is strategically located in the growing market between Nashville and Knoxville.

“Joining forces with Beacon is a step ahead for our customers,” commented Donna Crabtree, Crabtree’s Owner. “We have grown the business from humble beginnings by working hard and treating customers right, and it’s clear that those values are inherent at Beacon.”

“We are pleased to welcome Crabtree to Beacon’s team. Their history of excellent customer service and supplier relations, combined with a superior location, will allow us to further grow Beacon’s presence in Tennessee, particularly this important but underserved area of the state,” commented Munroe Best, President, South Division Beacon.

Forward-Looking Statements

This press release contains information about management’s view of Beacon’s future expectations, plans and prospects that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by the fact that they do not relate strictly to historic or current facts and often use words such as "anticipate", "estimate", "expect", "believe", "will likely result", "outlook", "project" and other words and expressions of similar meaning. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including, but not limited to, those set forth in the “Risk Factors” section of Beacon’s latest Form 10-K and subsequent filings with the U.S. Securities and Exchange Commission. In addition, the forward-looking statements included in this press release represent Beacon’s views as of the date of this press release and these views could change. However, while Beacon may elect to update these forward-looking statements at some point, Beacon specifically disclaims any obligation to do so, other than as required by applicable law. These forward-looking statements should not be relied upon as representing Beacon’s views as of any date subsequent to the date of this press release.

About Beacon

Founded in 1928, Beacon is a Fortune 500, publicly traded distributor of roofing materials and complementary building products in North America, operating over 400 branches throughout all 50 states in the U.S. and 6 provinces in Canada. Beacon serves an extensive base of over 80,000 customers, utilizing its vast branch network and diverse service offerings to provide high-quality products and support throughout the entire business 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/20211231005002/en/

INVESTORS

Binit Sanghvi

VP, Capital Markets & Treasurer

Binit.Sanghvi@becn.com

972-369-8005

MEDIA

Jennifer Lewis

VP, Communications and Corporate Social Responsibility

Jennifer.Lewis@becn.com

571-752-1048

Source: Beacon

FAQ

What is the purpose of Beacon's acquisition of Crabtree?

The acquisition aims to enhance Beacon's distribution capabilities in Tennessee and improve customer service.

When did Beacon acquire Crabtree Siding and Supply?

The acquisition became effective on January 1, 2022.

How much annual sales does Crabtree generate?

Crabtree has annual sales of approximately $1 million.

What is the strategic importance of Crabtree's location for Beacon?

Crabtree's location is strategically situated between Nashville and Knoxville, targeting a growing market.

How will the acquisition impact Beacon's growth in Tennessee?

The acquisition is expected to strengthen Beacon's presence in Tennessee, particularly in underserved areas.