Beacon Announces Acquisition of SSR Roof Supply

Rhea-AI Summary

Beacon (Nasdaq: BECN), a leading wholesale distributor of roofing and exterior products, has acquired SSR Roof Supply in Vancouver, British Columbia. This acquisition adds two branches to Beacon's network, expanding its presence in the fast-growing Vancouver market. SSR, a family-owned company with over 30 years of experience, serves residential and commercial contractors.

The acquisition brings Beacon's total branch count in British Columbia to three, enabling it to reach nearly 80% of the province's population. This move aligns with Beacon's strategy of above-market growth through footprint expansion, marking its 8th acquisition in 2024. Beacon has already surpassed its Ambition 2025 revenue and shareholder return targets in 2023 and continues to progress towards achieving its full Ambition 2025 plan.

Positive

• Acquisition of SSR Roof Supply expands Beacon's market presence in Vancouver
• Increased reach to 80% of British Columbia's population
• 8th acquisition in 2024, demonstrating consistent growth strategy
• Exceeded Ambition 2025 revenue and shareholder return targets in 2023

Negative

• None.

Insights

Financial Analyst

Beacon's acquisition of SSR Roof Supply is a strategic move to expand its presence in the Vancouver market. This aligns with Beacon's aggressive growth strategy, marking their 8th acquisition in 2024. The deal strengthens Beacon's position in British Columbia, now reaching 80% of the province's population.

Financially, while specific terms weren't disclosed, this acquisition should positively impact Beacon's revenue and market share. It's particularly noteworthy that Beacon has already exceeded its Ambition 2025 revenue targets in 2023, indicating strong performance and execution of its growth strategy. This acquisition further supports their trajectory towards achieving the full Ambition 2025 plan.

For investors, this move signals Beacon's commitment to inorganic growth and market expansion, which could drive long-term value. However, the integration process and potential synergies will be key factors to monitor in the coming quarters.

Market Research Analyst

The acquisition of SSR Roof Supply is a calculated expansion into the thriving Vancouver market. Vancouver's construction sector has been robust, driven by population growth and urban development. By acquiring a well-established local player with over 30 years of experience, Beacon gains immediate market access and local expertise.

This move aligns with the broader consolidation trend in the building materials distribution industry. Larger players like Beacon are acquiring regional distributors to expand their footprint and achieve economies of scale. The addition of SSR's two branches brings Beacon's total to three in British Columbia, significantly enhancing its service capability in the region.

For Beacon, this acquisition not only expands its geographical reach but also diversifies its customer base across residential and commercial sectors. This balanced approach could provide some insulation against sector-specific downturns, potentially reducing risk for investors.

Expands service for roofing contractors in Vancouver

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 SSR Roof Supply Ltd. (“SSR”). SSR operates two branches in the Vancouver, British Columbia market, with one branch in Burnaby and the other in Surrey.

SSR Roof Supply Ltd. (Photo: Business Wire)

SSR has been serving residential and commercial contractors for over 30 years. “We are proud of our history as a family-owned company dedicated to serving our customers’ needs with quality products and face to face service. Joining forces with Beacon will bring our customers a more robust catalog of products as well as services that help contractors run their business more efficiently,” commented Raj, Sunil and Surinder Bath, of SSR.

“The Bath family has built an impressive business supporting the fast-growing Vancouver market. We are thrilled to welcome the SSR employees to Beacon and further expand our Canada-wide customer service. We now have a total of three branches in British Columbia and can reach almost 80% of the province’s population to supply materials for new construction, repairs and remodeling,” added Charles Michaud, Beacon’s Regional Vice President, Canada.

Beacon continues to drive above market growth via footprint expansion with 8 acquisitions to date in 2024. 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/20240731352088/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 Vancouver?

Beacon (BECN) acquired SSR Roof Supply , a company with two branches in the Vancouver, British Columbia market.

How many acquisitions has Beacon (BECN) made in 2024?

Beacon (BECN) has made 8 acquisitions to date in 2024, including the acquisition of SSR Roof Supply.

What percentage of British Columbia's population can Beacon (BECN) now reach after the SSR acquisition?

After acquiring SSR Roof Supply, Beacon (BECN) can now reach almost 80% of British Columbia's population to supply materials for construction, repairs, and remodeling.

How does the SSR acquisition align with Beacon's (BECN) growth strategy?

The acquisition of SSR aligns with Beacon's strategy of driving above-market growth through footprint expansion, contributing to its progress towards achieving the full Ambition 2025 plan.