Herndon, Virginia-based roofing material and building products distributor Beacon (Nasdaq: BECN) has sold its solar products business to BayWa r.e., a renewable energy developer, service supplier and systems provider.
Beacon’s solar business features four dedicated and six shared branch locations, where the company distributes solar products to residential and commercial contractors.
The business was part of the company’s larger Allied Building Products acquisition in 2018.
In the fiscal year ended Sept. 30, Beacon Solar Products generated approximately $111 million in net sales, a net income of $2.6 million and adjusted EBITDA of $3.7 million, the company said.
“The divestiture of Solar Products is in line with our strategy to focus on our core exteriors customers,” stated Julian Francis, Beacon president and CEO. “BayWa r.e. is one of the most respected brands in the clean energy business and uniquely situated to provide the best service for our solar customers and the best opportunities for Beacon Solar employees. We also look forward to developing cross marketing and selling opportunities with BayWa r.e. to mutually benefit both companies in their respective markets.”
Global Power Partners served as sole financial advisor to Beacon, and Sidley Austin LLP acted as legal advisor to Beacon on the transaction. Eversheds Sutherland (US) LLP served as legal advisor to BayWa r.e. on the transaction.