On July 7, building products distributor Beacon announced that it has reached an agreement with Clayton, Dubilier & Rice, LLC (CD&R) to repurchase all of the outstanding shares of its Series A Preferred Stock held by CD&R’s affiliate for more than $800 million.

Beacon said the transaction will be financed by a mix of new and existing debt funding and cash on hand. The company said the closing of the transaction would occur “no later than August 11,” according to a news release.

The 400,000 outstanding shares will be repurchased from CD&R for an aggregate amount equal to $804.5 million, plus aggregate accrued and unpaid dividends as of the repurchase date, Beacon said.

Beacon’s Board of Directors approved the transaction based on the recommendation of a special transaction committee composed solely of disinterested directors, according to the news release.

After the transaction is completed, CD&R will continue to own the 15.2 million shares of common stock it currently directly holds.

“This transaction marks an important milestone for our Company and our stockholders,” said Julian Francis, Beacon’s President and CEO. “This transaction further positions us to execute on our strategic priorities and Ambition 2025 financial targets, to create value for our customers, stockholders, employees, and other stakeholders. We appreciate everything CD&R has done to bring this transaction to fruition and look forward to its continued support going forward.”

Beacon ranks No. 6 among Building Materials/Construction distributors on MDM’s 2023 Top Distributors Lists.

Read more about the transaction here.