CLEVELAND, Jan. 12, 2021 /PRNewswire/ — American Securities, a private equity firm, announced that it is acquiring the Interior Products business of Beacon, a leading distributor of roofing and other building materials, for $850 million. The transaction, which is expected to complete early in 2021, comes soon after the news that American Securities would acquire Foundation Building Materials, a leading distributor of wallboard, suspended ceiling systems, metal framing, and other specialty building materials.
According to Freedonia Group industry analyst Matt Zielenski, “By combining Foundation Building Materials and Beacon’s Interior Products business, American Securities will create a leading distributor of such interior building components as drywall, framing and ceiling systems, ceilings, and such products as fasteners and sealants. This new entity will have over 250 sales outlets and annual revenues of more than $3 billion, allowing it to serve both residential and commercial customers throughout the US.”
The US is expected to see growth in new housing activity in 2021 as people remain interested in owning their own homes. Furthermore, home improvement activity is projected to continue to be strong through the year as people invest in their homes, such as by adding home offices and gyms. Both of these factors are forecast to boost demand for interior building products.
Stated Zielenski: “For Beacon, the transaction allows the company to concentrate on its core businesses of roofing and roofing accessories, and such exterior products as siding, exterior moulding and trim, windows and doors, and decking. Additionally, the company can use the proceeds to pay down debt and provide more capital for future business opportunities, such as acquiring other roofing distributors.”
For more information on the outlook for interior building materials and the construction market, see the following pages on the Freedonia Group website:
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SOURCE The Freedonia Group