Beacon (BECN) Buys Crabtree, Expands Tennessee Presence

 | Jan 02, 2022 10:30PM ET

Beacon Roofing Supply (NASDAQ:BECN), Inc. BECN has acquired a wholesale distributor of residential exterior building materials — Crabtree Siding and Supply. This takeover has further strengthened Beacon’s presence in Tennessee. Yet, the financial terms of the transaction are not yet disclosed.

Shares of Beacon — the largest distributor of residential and non-residential roofing materials in the United States and Canada — gained 1.06% on Dec 31, 2021.h3 Buyout Benefits/h3

Crabtree, generating revenues of $1 million annually, provides a wide range of complementary products to contractors and homebuilder customers. Its Cookeville, TN, location is strategically situated in the growing market between Nashville and Knoxville and has a solid repute for profitable relationships with customers and suppliers.

Munroe Best, president, South Division Beacon, said, “We are pleased to welcome Crabtree to Beacon’s team. Their history of excellent customer service and supplier relations, combined with a superior location, will allow us to further grow Beacon’s presence in Tennessee, particularly this important but underserved area of the state.”

h3 Strategic Efforts: a Boon/h3

Beacon has undertaken several strategic initiatives to drive its long-term ambition of growing and enhancing customer experience, expanding the top line and margin as well as boosting value for customers, suppliers, employees, and shareholders.

On Nov 1, 2021, the company acquired Midway Sales & Distributing, Inc., a leading Midwest distributor of residential and commercial exterior building and roofing supplies, including a broad offering of complementary products to contractors, homebuilders, and retail customers. The buyout deepened Beacon’s strong presence in the Midwest.

On Feb 10, it completed the divesture of Interior Products to Foundation Building Materials (NYSE:FBM) Holding Company LLC for approximately $850 million in cash. The divestment helped Beacon to return to its legacy position as a focused leader with an exterior building products distribution.

Meanwhile, the company’s board decided to change its fiscal year end from Sep 30 to Dec 31 (effective Jan 1, 2022) for the year ending Dec 31, 2022. It feels that the change will be extremely beneficial via the promotion of internal efficiencies and better external comparability.