HERNDON, Va. — Beacon announced the successful completion of the previously announced sale of its interior products and insulation businesses to Foundation Building Materials, majority-owned by affiliates of American Securities LLC, a leading U.S. private equity firm.
The cash sale price of $850 million is subject to certain net working capital and other adjustments.
“Finalizing the sale of Interior Products represents a transformational event for our company,” said Julian Francis, Beacon’s president and CEO. “As we focus on growing our core exteriors business, proceeds from the sale significantly enhance our financial flexibility. Our entire organization is now committed to growing sales and improving the profitability of our exteriors business.
"We appreciate the cooperative efforts of the Beacon, American Securities and FBM teams to rapidly complete this transaction. We are grateful to the Interior Products employees for their strong dedication to customer service while part of Beacon and look forward to seeing their continued success.”
The Interior Products divestiture accelerates Beacon's ongoing efforts to improve its financial flexibility and enhances its ability to pursue strategic growth initiatives in its core exteriors business. Beacon intends to use the anticipated after-tax proceeds of approximately $750 million from this divestiture to reduce net leverage, strengthen its balance sheet and invest for growth.
“This transaction significantly expands our presence in many markets throughout the United States and provides attractive opportunities to drive revenue and profit growth while delivering meaningful long-term benefits to our customers, vendors, employees and the communities we serve,” said Ruben Mendoza, president and CEO of FBM. “FBM has long been one of the largest specialty building product distributors of interior products, and we look forward to bringing together these two great businesses.”