Beacon Roofing Supply, Inc.
) has completed the purchase of the leading wholesale distributor
of building products, Cassady Pierce Company. The financial terms
of the deal are undisclosed.
Earlier in May, Beacon Roofing announced that it would buy
Pittsburgh, Pennsylvania-based Cassady Pierce, a privately held
leading distributor of residential and commercial exterior building
products. Cassady Pierce chiefly caters to professional roofer,
remodeling contractor, builder, general contractor and retail home
center markets of Western Pennsylvania, Northern West Virginia and
the Eastern countries of Ohio.
With the acquisition, Beacon Roofing will be able to expand its
business in the unexplored regions of Pennsylvania. Further, it
will help the company in augmenting its product portfolio in the
lines of its building products.
The acquisition of Cassady Pierce is in line with the aggressive
acquisition strategy of Beacon. The company intends to buy market
leaders in geographic areas with the intent of expanding its
footprint into potential yet unexplored regions.
Recently, Beacon entered into a new five-year senior secured
credit facility that includes a $550 million U.S. credit facility
and a C$15 million ($15.1 million) Canadian credit facility with
Wells Fargo Bank
, National Association (
The credit facility refinanced its previous $515 million credit
facility provided through GE Antares and an affiliate. With this
new credit facility Beacon Roofing will be able to remain active on
its acquisition front. The facility provides the company ample
liquidity and financial stability to continue implementing its
However, slow recovery in housing starts and weak construction
activities have considerably affected the company's residential as
well as non-residential sales volumes across certain regions while
Beacon still remains concerned about low corporate profits and
tight credit conditions.
Currently, Beacon Roofing retains a short-term Zacks #1 Rank
(Outperform). We have a long-term Neutral recommendation on the
BEACON ROOFING (BECN): Free Stock Analysis
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