Beacon announced it received early termination of the waiting period required under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 in connection with the divestiture of its interior products business.
“We are very pleased to receive early termination of the HSR waiting period for the sale of our interiors business to American Securities,” Julian Francis, Beacon’s CEO and president said in a news release. “We remain on schedule to close the transaction during our fiscal second quarter.”
Beacon previously announced in December it had entered a definitive agreement to sell its interior products business to affiliates of private equity firm American Securities for $850 million. The transaction is expected to close in the fiscal 2021 second quarter, subject to customary closing conditions. American Securities also acquired specialty building products distributor Foundation Building Materials in an all-cash transaction in December.
“For our interiors customers and employees, this is an exciting opportunity to be paired with an industry leader who makes customer service its highest priority,” Francis said. “For Beacon, the transaction represents an important strategic step that will sharpen our focus on driving growth and operational improvement in our core exteriors business and greatly accelerate our balance sheet improvement efforts.”
Beacon’s interior products business generated $1.03 billion in net sales, a net loss of $11 million, and an adjusted EBITDA of $73 million during the fiscal 2020 year.
Herndon, Va.-based Beacon is a distributor of roofing materials and complementary building products, with over 500 branches throughout all 50 states and six Canadian provinces. American Securities is based in New York and the company and its affiliates have approximately $23 billion under management.
