Beacon Roofing Supply to Acquire Allied Building Products from CRH for $2.625 Billion
HERNDON, Va. — Beacon Roofing Supply, Inc., the largest publicly traded distributor of roofing and complementary building products in North America, announced that the company 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 plc for $2.625 billion in cash.
Beacon expects to finance the acquisition with approximately $2.2 billion of debt financing through an upsized ABL revolving credit facility, an upsized term loan B facility, a new unsecured senior note and approximately $500 million of committed convertible preferred equity financing from an entity affiliated with the investment firm Clayton, Dubilier & Rice, which in October 2015 sold Roofing Supply Group to Beacon. The parties currently expect to consummate the transaction on or around January 2, 2018, subject to satisfaction of customary closing conditions.
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 roofing, siding, windows and doors, and interior products, such as wallboard and suspended ceiling systems. The combination of Beacon and Allied will make Beacon one of the largest publicly traded wholesale building materials distributors in North America with pro forma revenues of approximately $7 billion and 593 branches in all 50 states and 6 provinces across Canada. Beacon will also become the fourth largest wallboard and acoustical ceiling tile wholesale distributor in the U.S., with more than $1 billion of revenue in the interior market category. Beacon and Allied have more than 150 years of combined experience providing service excellence to customers in the building products industry.