Beacon Announces Strategic Acquisition of Coastal Construction Products | Company

HERNDON, Va.–(BUSINESS WIRE)–November 1, 2022–

Tag (Nasdaq: BECN) (the “Company”) today announced that it has acquired Coastal Construction Products (“Coastal”), based in Jacksonville, Florida, one of the largest independent distributors of waterproofing specialists in the United States, with the majority owner of the Company, Supply Chain Equity Partners (“SCEP”), a leading private equity firm focused on the distribution sector, and members of current and former 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.

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Beacon currently sells waterproofing products through its commercial and residential roofing branches as well as 13 specialty waterproofing locations on the West Coast of the United States. The coast has 18 dedicated waterproofing locations serving the Southeast and Midwest. The resulting combination, a new platform for future growth, creates an unprecedented opportunity to leverage a coast-to-coast footprint to better serve customers locally, regionally and nationally, including including in storm-prone regions where waterproofing is essential to protect buildings, adapt to stricter building codes and increased maintenance standards. Beacon’s new specialty waterproofing division will be led by Coastal CEO Martin Harrell.

“CEP has been a great partner and we are grateful for their help in achieving our 2025 Vision,” commented Mr. Harrell. “They have allowed us to grow much faster than we could have on our own by funding and supporting our organic growth initiatives, as well as accelerating our development and acquisition program. Now the entire Coastal team is thrilled to join 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 improve 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.

“We are delighted to welcome the more than 200 Coastal employees to the Beacon team. Their core values, customer-focused service model and deep sealing expertise are an ideal complement as we continue to move towards the Ambition 2025 goals that we announced in February,” commented Julian Francis, President and CEO of Beacon. “Expanding access to sealants nationwide enhances our value proposition to our commercial and multi-family customers and provides the opportunity to build more together. I am particularly pleased that Martin Harrell will report to me and lead Beacon’s new specialty waterproofing division to strengthen our focus and capitalize on the above-market growth opportunities we see for waterproofing products.

Coastal’s estimated revenue and EBITDA for the full year 2022 are expected to be approximately $250 million and $25 million, respectively. Beacon expects to continue to report sealing revenue as part of its complementary line of business in the future. Pro forma net debt leverage remains below Beacon’s 2.5x target and the synergized trading multiple is expected to be below Beacon’s current trading multiple. The Company intends to provide additional perspective on this transaction during its third quarter 2022 earnings call.

Forward-looking statements

This press release contains information about management’s views on Beacon’s future expectations, plans and prospects that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts and often use words such as “anticipate”, “estimate”, “expect”, “believe”, “probably will result”, “prospects”, “project” and other words and phrases of similar meaning. Actual results may differ materially from those indicated by these forward-looking statements due to a variety of important factors, including, but not limited to, those set forth in the “Risk Factors” section of Beacon’s most recent Form 10-K and subsequent filings with the United States Securities and Exchange Commission. In addition, the forward-looking statements included in this press release represent Beacon’s views as of the date of this press release and those views are subject to change. However, while Beacon may choose to update these forward-looking statements at any time, Beacon specifically disclaims any obligation to do so, except as required by applicable law. These forward-looking statements should not be taken to represent the views of Beacon as of any date subsequent to the date of this press release.

About the tag

Founded in 1928, Beacon is a Fortune 500 publicly traded distributor of building products, including roofing materials and complementary products such as siding and waterproofing. With this acquisition, the company operates more than 470 branches in all 50 US states and 6 Canadian provinces. Beacon serves a broad base of over 80,000 customers, utilizing its extensive branch network and diverse service offerings to deliver high-quality products and support throughout the business lifecycle. Beacon offers its own private label, TRI-BUILT®, and has a proprietary digital account management suite, Beacon PRO+, which allows customers to manage their businesses online. Beacon shares trade on the Nasdaq Global Select Market under the ticker symbol BECN. To learn more about Beacon, please visit www.becn.com.

About Supply Chain Equity Partners

Based in Tampa, Florida, Supply Chain Equity Partners is the only committed equity private equity firm in North America that invests exclusively in the distribution and logistics space. Founded by industry veterans and backed by leading institutional investors, the fund strives to help build and sustain industry-leading distribution companies. SCEP has invested in 54 distribution companies since 2007. For more information, visit www.supplychainequity.com.

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CONTACT: BEACON INVESTOR CONTACT

Binit Sanghvi

Vice President, Capital Markets and Treasurer

[email protected]

972-369-8005BEACON MEDIA CONTACT

Jennifer Lewis

Vice President, Communications and CSR

[email protected]

571-752-1048SUPPLY CHAIN ​​EQUITY PARTNERS

Jim Miller

Managing Director & Principal

[email protected]

216-925-4184

KEYWORD: UNITED STATES NORTH AMERICA VIRGINIA

SECTOR KEYWORD: ARCHITECTURE OTHER BUILDING & REAL ESTATE RESIDENTIAL BUILDING & REAL ESTATE COMMERCIAL BUILDING & REAL ESTATE CONSTRUCTION & REAL ESTATE BUILDING SYSTEMS URBAN PLANNING

SOURCE: beacon

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PUBLISHED: 01/11/2022 09:15 / DISK: 01/11/2022 09:16

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