New branches and acquisitions drove much of the sales growth for Beacon Roofing Supply in the second quarter. And expectations are that they will help produce sales growth of 6 percent to 8 percent in 2015, President and CEO Paul Isabella said.
The building materials sector has been one of the most active in distribution M&A over the past years, and Beacon Roofing is one of the players fueling the sector's rampant consolidation. The Herndon, VA, distributor of residential and commercial roofing materials and complementary building products has completed two deals since the end of the fiscal year – but could perhaps see many more on the horizon.
"From an acquisition perspective, we continue to talk to numerous companies," Isabella said. "As we've said before, it's difficult to predict when sellers will sell, but we know we have the capital structure and operating strength to do multiple deals and we'll continue to work on executing these as we have in the past. Our pipeline continues to be full and we're optimistic on future deals."
Greenfield expansion also plays a key role for the company's growth, with five new branches opening so far in 2015.