Beacon Announces Fourth Quarter Footprint Expansion

Rhea-AI Summary

Beacon (BECN), the leading publicly-traded specialty wholesale distributor of roofing and exterior products, announced its Q4 2024 footprint expansion results. The company completed two strategic acquisitions in Massachusetts: Ryan Building Products in Westwood, specializing in seamless metal gutter fabrication, and Fairway Wholesale Distribution in South Hadley, a longtime lumberyard supplier.

Additionally, Beacon opened two new greenfield locations in Arnold, Missouri and Lebanon, Tennessee to enhance service in the St. Louis and Nashville markets. These locations will offer residential, non-residential, and complementary building products, including Beacon's TRI-BUILT® line.

This expansion aligns with Beacon's Ambition 2025 plan, following the company's success in exceeding its revenue and shareholder return targets in 2023.

Positive

• Strategic expansion through two acquisitions and two new greenfield locations
• Exceeded Ambition 2025 revenue and shareholder return targets in 2023
• Acquisition of established companies with experienced teams and strong service records

Negative

• None.

Insights

Financial Analyst

<p>Beacon's Q4 2024 footprint expansion reflects a strategic execution of their Ambition 2025 growth plan, with the acquisition of two established Massachusetts-based distributors and two new greenfield locations in key markets. The acquisitions of <b>Ryan Building Products</b> and <b>Fairway Wholesale Distribution</b> strengthen Beacon's presence in the Northeast, particularly in the specialized metal gutter fabrication segment and lumber distribution channels. These acquisitions bring valuable customer relationships and experienced teams, which typically translates to immediate revenue contribution and market share gains.</p><p>The greenfield expansions in Arnold, Missouri and Lebanon, Tennessee represent a calculated move to capture market share in the growing St. Louis and Nashville markets. These locations will contribute to revenue growth after an initial ramp-up period, typically 12-18 months. The expansion demonstrates Beacon's commitment to its distribution network optimization strategy, which aims to improve customer service while driving operational efficiencies.</p><p>The company's ability to exceed its Ambition 2025 revenue targets in 2023 suggests strong execution capability and market demand. This expansion indicates continued momentum in their growth strategy, though the full financial impact will depend on successful integration and market penetration rates.</p>

Market Research Analyst

<p>The strategic significance of these expansions lies in their market positioning. The Massachusetts acquisitions tap into the mature Northeast market, where Ryan Building Products' 45-year presence in metal gutter fabrication provides a specialized competitive advantage. Fairway's lumberyard customer base adds a complementary revenue stream and cross-selling opportunities for Beacon's broader product portfolio.</p><p>The greenfield locations in Tennessee and Missouri are particularly noteworthy given the robust construction activity in these markets. Nashville continues to experience strong population growth and commercial development, while St. Louis shows steady demand in both residential and commercial sectors. These markets present significant opportunities for Beacon's full product line, including their private label TRI-BUILT® products, which typically carry higher margins.</p><p>This expansion pattern aligns with broader industry trends showing increased demand for specialized building products and the importance of local presence in the construction supply chain. The strategy of combining acquisitions with greenfield expansions provides both immediate market entry and organic growth potential.</p>

Two acquisitions and two greenfield branches expand service area in Massachusetts, Missouri and Tennessee

HERNDON, Va.--(BUSINESS WIRE)-- Beacon (Nasdaq: BECN) the leading publicly-traded specialty wholesale distributor of roofing, waterproofing and related exterior products announced today the results of its footprint expansion initiatives during the fourth quarter of 2024.

Aligning with M&A growth goals, Beacon acquired Ryan Building Products in Westwood, Massachusetts and Fairway Wholesale Distribution in South Hadley, Massachusetts. Founded in 1979, Ryan Building Products specializes in seamless metal gutter fabrication and delivery. Fairway Wholesale Distribution has been serving lumberyard customers for nearly five decades. Both companies bring tenured and knowledgeable teams with a strong service record.

To better serve customers in the St. Louis and Nashville markets. Beacon opened greenfield locations in Arnold, Missouri and Lebanon, Tennessee. Contractors in these areas now have more convenient Beacon branches to serve them with residential, non-residential and complementary building products including Beacon’s own TRI-BUILT^® line.

Beacon continues to drive above market growth via footprint expansion through acquisitions and new greenfield branches. Adding locations and teams to deepen customer service is an important element of our Ambition 2025 plan. Beacon exceeded its Ambition 2025 revenue and shareholder return targets in 2023 and continues to advance on achieving its full potential.

About Beacon

Founded in 1928, Beacon is a Fortune 500, publicly traded distributor of building products, including roofing materials and complementary products, such as siding and waterproofing. The company operates over 580 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 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/20250106454035/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 acquisitions did Beacon (BECN) make in Q4 2024?

Beacon acquired Ryan Building Products in Westwood, MA, specializing in metal gutter fabrication, and Fairway Wholesale Distribution in South Hadley, MA, a lumberyard supplier.

Where did Beacon (BECN) open new greenfield locations in Q4 2024?

Beacon opened new greenfield locations in Arnold, Missouri and Lebanon, Tennessee to better serve the St. Louis and Nashville markets.

How does this expansion align with Beacon's (BECN) strategic goals?

The expansion aligns with Beacon's Ambition 2025 plan and M&A growth goals, supporting above-market growth through acquisitions and new greenfield branches.

What products will Beacon (BECN) offer at its new locations?

The new locations will offer residential, non-residential, and complementary building products, including Beacon's proprietary TRI-BUILT® product line.

How did Beacon (BECN) perform against its Ambition 2025 targets in 2023?

Beacon exceeded its Ambition 2025 revenue and shareholder return targets in 2023.