Beacon Roofing Supply Inc., the largest publicly traded distributor of roofing and complementary building products in North America, has entered into a definitive purchase agreement to acquire Allied Building Products Corp., one of the country’s largest exterior and interior building products distributors, from global diversified building products group CRH for $2.625 billion in cash.

Founded in 1950, Allied is headquartered in East Rutherford, N.J., and distributes products across 208 locations in 31 states. These include exterior products such as doors and windows, roofing and siding, and interior products such as wallboard and suspended ceiling systems. The combination of Beacon and Allied will create a huge wholesale building materials distributor for North America with revenues of approximately $7 billion and 593 branches in all 50 states and six provinces across Canada.

The expanded geographic footprint will allow Beacon to enter new local markets, particularly in New York, New Jersey and the upper Midwest. In addition, acquiring Allied allows Beacon to accelerate growth in other key product categories, including doors, windows, siding, decking, trim, waterproofing, insulation and solar.

“Allied is among the most established and respected companies in our industry, and we are proud that, through this acquisition, Beacon will become one of North America’s largest publicly traded building materials distributors and will operate locations in all 50 states,” said Robert R. Buck, chair of Beacon’s board of directors. “I want to thank CRH for entrusting Beacon with the future success of Allied and its dedicated employees, who have been part of the CRH family for more than 20 years. Today is of great significance in Beacon’s history and for the future of building products distribution.”

Based in Ireland, CRH is a leading global diversified building materials group, employing 87,000 people at 3,800 operating locations in 31 countries worldwide. With a market capitalization of €26 billion ($30.7 billion), CRH is the largest building materials company in North America and the second largest worldwide.

Allied’s 3,500 employees will join Beacon’s workforce of more than 5,000.

“We are thrilled to partner with such a loyal and dedicated workforce that shares our commitment to superior customer service and high levels of performance,” said Paul Isabella, Beacon’s president and CEO. “We are also excited to become a significant player in the robust, growing and still-consolidating interior products market. Together, we will leverage the strengths of both companies, while remaining committed to preserving the deep customer relationships that we have each cultivated over 150 years of combined experience. This is a milestone moment in the long and successful histories of both companies.”

The transaction is expected to close on or around January 2, 2018.

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