Beacon Announces Acquisition of Roofers Mart of Southern California

Rhea-AI Summary

Beacon (Nasdaq: BECN) announced the acquisition of Roofers Mart of Southern California, based in Walnut, California. Roofers Mart, a company with a 40-year history, specializes in serving roofing contractors in the Los Angeles area. The acquisition aims to enhance Beacon's commercial roofing services in Los Angeles, providing a more extensive catalog including Beacon's TRI-BUILT® branded products and additional resources like Beacon PRO+. This move aligns with Beacon's strategy to grow its commercial roofing sector, marking its seventh acquisition in 2024. The company is progressing toward its goal of becoming North America's leading commercial roofing distributor, having already exceeded its 2023 revenue and shareholder return targets as part of its Ambition 2025 plan.

Positive

• Beacon's acquisition of Roofers Mart strengthens its presence in the Los Angeles market.
• The deal expands Beacon's catalog to include more products, benefiting contractors.
• Beacon exceeded its 2023 revenue and shareholder return targets.
• This acquisition is part of Beacon's strategy to grow its commercial roofing business, marking its seventh acquisition in 2024.

Negative

• None.

Insights

Financial Analyst

The acquisition of Roofers Mart of Southern California by Beacon is a strategic move that is likely to expand Beacon's market share and strengthen its position in the commercial roofing industry. Beacon's recent expansion efforts, evident from their seven acquisitions in 2024, reflect a broader growth strategy aimed at cementing their status as a leading commercial roofing distributor in North America.

From a financial perspective, acquisitions can offer synergies such as enhanced product offerings, improved supply chain efficiencies and economies of scale. By integrating Roofers Mart's established service in Los Angeles with Beacon's extensive catalog, there is potential for revenue growth and cost savings. Specifically, the inclusion of Beacon's TRI-BUILT® branded products and services like Beacon PRO+ could attract a larger customer base and increase sales volumes.

Investors should note that Beacon has exceeded its Ambition 2025 revenue and shareholder return targets in 2023. This performance benchmark indicates strong management and execution capabilities, which could boost investor confidence. However, integrating acquisitions always carries risks, such as potential cultural clashes or operational disruptions, which need to be managed carefully to realize the expected benefits.

Market Research Analyst

The acquisition strengthens Beacon's footprint in the Los Angeles market, a vital region for commercial roofing due to its construction activity and market size. Roofers Mart's 40-year history and established customer trust provide Beacon with a ready-made customer base and a solid reputation to build upon. This local expertise, combined with Beacon's resources, could enable significant market penetration and increased customer loyalty.

The broader trend in the roofing industry towards consolidation means that larger players like Beacon can offer more comprehensive services and better pricing, leveraging their scale. This trend benefits contractors who can access a wider range of products and services from a single supplier, simplifying procurement and potentially reducing costs.

In the long term, Beacon's ambition to become the top commercial roofing distributor in North America could yield substantial competitive advantages. However, competition remains intense and maintaining customer satisfaction during and after the integration process will be important for sustaining growth.

Expands service for commercial contractors in Los Angeles

HERNDON, Va.--(BUSINESS WIRE)-- Beacon (Nasdaq: BECN) announced today that it has completed the acquisition of Roofers Mart of Southern California, Inc. (“Roofers Mart”) located in Walnut, California.

Roofers Mart of Southern California, Inc.

Roofers Mart has a 40-year history serving roofing contractors in the Los Angeles metro market. “We are excited to join the Beacon team. Our customers trust us to deliver top quality, which will be enhanced as we combine with Beacon to extend our expertise, scope, and size,” commented Greg Robles, CEO of Roofers Mart. “Contractors will benefit from a larger catalog, including Beacon’s TRI-BUILT® branded products, along with additional resources to bring value-added services such as Beacon PRO+ to help them grow their businesses.”

“Greg and his team are well known for their customer focus and service delivery, especially in commercial roofing. We are excited to welcome them to the Beacon team and broaden our Los Angeles Beacon OTC® Network service area. This acquisition is yet another example of our focus on growing commercial roofing,” added Nevin Holly, Beacon’s Regional Vice President, Pacific.

Beacon continues to drive above market growth via footprint expansion with seven acquisitions to date in 2024. The Company is also advancing on its goal of being the top commercial roofing distributor in North America with actions such as the launch of TRI-BUILT® ISO commercial roofing insulation. 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 560 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/20240710314693/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 acquire?

Beacon acquired Roofers Mart of Southern California.

Where is Roofers Mart of Southern California based?

Roofers Mart is based in Walnut, California.

How will the acquisition of Roofers Mart benefit Beacon?

The acquisition will enhance Beacon's commercial roofing services in Los Angeles by expanding its product catalog and adding resources like Beacon PRO+.

What is the significance of Beacon's acquisition of Roofers Mart for its growth strategy?

The acquisition aligns with Beacon's strategy to grow its commercial roofing business, marking its seventh acquisition in 2024 and helping it move toward its goal of becoming North America's top commercial roofing distributor.

What are Beacon's recent financial achievements?

Beacon exceeded its revenue and shareholder return targets for 2023 as part of its Ambition 2025 plan.