HERNDON, Va. — Beacon announced that it has acquired Jacksonville, Fla.-based Coastal Construction Products, one of the largest independent distributors of specialty waterproofing products in the United States, from the company’s majority owner, Supply Chain Equity Partners (SCEP), a leading private equity firm focused on the distribution sector, and members of current and prior management. This is Beacon’s fifth acquisition in the last 12 months, and the third since the launch of its Ambition 2025 goals in February 2022.
Coastal has 18 locations dedicated to waterproofing serving the Southeast and Midwest. Beacon currently sells waterproofing products throughout its commercial and residential roofing branches as well as 13 specialty waterproofing locations in the Western U.S. The resulting combination, a new platform for future growth, creates an opportunity to leverage a coast-to-coast footprint to better serve customers locally, regionally and nationally, including in storm-exposed regions where waterproofing is essential to protecting buildings, adapting to stricter building codes and meeting heightened maintenance standards. Beacon’s new specialty waterproofing division will be led by Coastal CEO Martin Harrell.
“SCEP has been a great partner and we are grateful for their help in achieving our Vision 2025,” said Harrell. “They allowed us to grow much faster than we could have done on our own by funding and supporting our internal growth initiatives as well as fast-tracking our greenfield and acquisition program. Now, the entire Coastal team is excited to be joining Beacon. This partnership allows us to bring our customers the benefits of Beacon’s North American footprint and specialized capabilities designed to accelerate growth and enhance profitability. The team and I believe partnering with Beacon provides the best opportunity to continue to build on our 45-year history and bring additional value to customers.”
Julian Francis, Beacon’s president and CEO, said Coastal's core values, customer-focused service model and depth of waterproofing expertise are an ideal fit as Beacon continues progress toward its Ambition 2025 goals announced in February.
“We are thrilled to welcome Coastal’s over 200 employees to the Beacon team,” said Francis. “Expanding nationwide access to waterproofing products enhances our value proposition to our commercial and multifamily customers and provides the opportunity to build more together. I am particularly pleased that Martin Harrell will be reporting to me and leading Beacon’s new specialty waterproofing division to enhance our focus and capitalize on the above-market growth opportunities we see for waterproofing products.”
Coastal’s estimated full year 2022 revenue and EBITDA are expected to be approximately $250 million and $25 million, respectively. Beacon expects to continue to report waterproofing revenues as part of its Complementary line of business going forward. The company intends to provide additional perspective on this transaction during its third quarter 2022 earnings call.