Malarkey Roofing Products has a track record of double-digit growth in the highly profitable $19 billion U.S. residential roofing market. In a release, Holcim said Malarkey is fully complementary to Firestone Building Products’ leadership in the commercial segment, positioning Holcim as a full roofing provider. Holcim acquired Firestone Building Products in April 2021.
Jan Jenisch, CEO of Holcim, said the acquisition is a strong start to the company's "Strategy 2025 – Accelerating Green Growth" plan. The goal is to expand its Solutions & Products business to 30% of group net sales by 2025 by becoming a global leader in roofing systems.
“I congratulate the Malarkey family for what they have achieved and am committed to investing in the company’s continued success to unleash its next era of growth together," Jenisch said. "Our companies are highly complementary with many upsides. I am impressed by the Malarkey brand, the innovative technology, the great network of production facilities and, most importantly, purpose driven employees who are vital for the company’s sustainable growth and national expansion plan. I am excited to further strengthen the Malarkey brand and legacy and welcome all employees and sites into the Holcim family.”
Malarkey Roofing Products was founded by Herbert Malarkey in 1956 and is headquartered in Portland, Ore. It provides complete solutions for residential roofing needs from roofing shingles to ice and water barriers. With production facilities in Oregon, California and Oklahoma, Malarkey Roofing Products has a strong presence from the West to the South of the U.S. that is highly complementary with Firestone Building Products’ footprint.
Gregory Malarkey, president of Malarkey Roofing, said like Malarkey, Holcim has a strong focus on driving the circular economy and leading the transition towards sustainable construction.
"It’s a very exciting time for both brands. To our employees, customers, partners, contractors, and friends, who continue to support our company and mission, thank you," Malarkey said. "You’ve witnessed first-hand the market’s rapid acceptance of our unique value proposition. With Holcim’s knowledge and resources, we can extend that value proposition to even more consumers. We’re just getting started.”
Synergies of $40 million per year are expected on a run-rate basis to be realized by year three. The acquisition is earnings per share (EPS) accretive from the first year.
“With Malarkey Roofing Products we enter the highly profitable and fast-growing residential roofing market, driven by repair and refurbishment as well as shifting customer preferences towards more sustainable and resilient building materials," said Jamie Gentoso, Global Head of Solutions & Products. "With a track record of double-digit growth for the past ten years, Malarkey is a proven growth engine for expanding our range of roofing systems from commercial to residential.”
The transaction is in line with Holcim’s commitment to strict financial discipline and is subject to customary conditions and regulatory clearance in the United States.