Beacon Roofing Supply Inc., Herndon, Virginia, has completed the previously announced $850 million sale of its interior products and insulation businesses to Foundation Building Materials, now majority-owned by affiliates of the private equity firm American Securities LLC.
Beacon said the divestiture of this division “accelerates the company’s ongoing efforts to improve its financial flexibility and enhances its ability to pursue strategic growth initiatives in its core exteriors business. The company intends to use the anticipated after-tax proceeds of approximately $750 million from this divestiture to reduce net leverage, strengthen its balance sheet and invest for growth.”
“Finalizing the sale of Interior Products represents a transformational event for our company,” said Julian Francis, Beacon’s president and CEO. “As we focus on growing our core exteriors business, proceeds from the sale significantly enhance our financial flexibility. Our entire organization is now committed to growing sales and improving the profitability of our exteriors business. We appreciate the cooperative efforts of the Beacon, American Securities and FBM teams to rapidly complete this transaction. We are grateful to the Interior Products employees for their strong dedication to customer service while part of Beacon and look forward to seeing their continued success.”
Added Ruben Mendoza, president and CEO of FBM: “This transaction significantly expands our presence in many markets throughout the United States and provides attractive opportunities to drive revenue and profit growth while delivering meaningful long-term benefits to our customers, vendors, employees and the communities we serve. FBM has long been one of the largest specialty building product distributors of interior products, and we look forward to bringing together these two great businesses.”