Beacon Announces Acquisition of Premier Roofing & Exteriors Distributor Midway Wholesale

Rhea-AI Summary

Beacon (Nasdaq: BECN) has acquired Midway Sales & Distributing, Inc., a key distributor of building and roofing supplies in the Midwest. This acquisition, valued at approximately $130 million in annual sales, aims to strengthen Beacon's market presence across Kansas, Missouri, and Nebraska. By integrating Midway's operations, Beacon expects to enhance customer service and leverage its digital solutions, thereby driving further growth in the region.

Positive

• Acquisition of Midway Sales & Distributing adds approximately $130 million in annual sales.
• Strengthens Beacon's presence in the Midwest, enhancing market share.
• Integration expected to improve customer service through digital solutions.

Negative

• None.

Strengthens Market Presence in the Midwest

HERNDON, Va.--(BUSINESS WIRE)-- Beacon (Nasdaq: BECN) (the “Company”) announced today that it has acquired Midway Sales & Distributing, Inc. (“Midway Wholesale” or “Midway”), a leading Midwest distributor of residential and commercial exterior building and roofing supplies, including a broad offering of complementary products to contractors, homebuilders and retail customers. Midway Wholesale has built a strong reputation for quality and reliability serving customers at 10 locations across Kansas, Missouri and Nebraska. With annual sales of approximately $130 million, the acquisition deepens Beacon’s already strong presence in the Midwest.

“The Midway team looks forward to joining forces with Beacon. Our business has grown successfully since incorporation in 1974 by providing customers with superior service and taking care of our employees,” commented John Ossello, Vice President, Midway. “We look forward to the investments Beacon will be able to make that further our partnership with customers and develop our team’s potential.”

“We are pleased to welcome Midway’s employees and customers to the Beacon team as we help build the next chapter of the company’s story,” said Julian Francis, President & CEO of Beacon. “Expanding our depth of service in the Midwest will bring Midway customers the opportunity to benefit from Beacon’s digital solutions, TRI-BUILT product line and OTC^® network. With this acquisition, our strategic initiative for growth takes on a new lever, adding a high-quality team and key locations to further drive our performance.”

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 90,000 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/20211101005751/en/

INVESTOR CONTACT

Binit Sanghvi

Head of Investor Relations

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 does the acquisition of Midway Sales & Distributing mean for Beacon (BECN)?

The acquisition enhances Beacon's market presence in the Midwest and is expected to increase annual sales by approximately $130 million.

When did Beacon acquire Midway Sales & Distributing?

The acquisition was announced on November 1, 2021.

How does the acquisition impact Beacon's customer service?

The integration of Midway's operations is anticipated to enhance customer service through improved digital solutions.

What regions will Beacon strengthen through the acquisition of Midway?

The acquisition strengthens Beacon's presence in Kansas, Missouri, and Nebraska.