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Beacon completes Smalley & Company acquisition

EditorNatashya Angelica
Published 05/02/2024, 03:34 AM
BECN
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HERNDON, Va. - Beacon (NASDAQ:BECN), a Fortune 500 distributor of building products, has finalized the acquisition of Smalley & Company, a distributor specializing in sealant and waterproofing solutions, with operations spanning six states in the U.S. This strategic move, announced earlier, was completed to expand Beacon's Waterproofing Division and enhance its service offerings to customers.

Smalley, which has been serving the construction industry since 1967, operates eleven locations in Arizona, California, Colorado, Nevada, New Mexico, and Utah. The company is recognized for its tailored solutions and technical expertise in the sealant and waterproofing sector.

Bruce Coy, CEO of Smalley, expressed confidence that the merger with Beacon's Waterproofing team will provide added value to both employees and customers, leveraging a broader geographic footprint.

Martin Harrell, Beacon’s Division President of Waterproofing, welcomed the Smalley employees and highlighted the technical expertise that Smalley brings to Beacon's Waterproofing Division. He emphasized the benefits for Smalley's customers, who will now have access to Beacon's expanded service offerings while maintaining the local relationships that have been developed over decades.

Beacon, established in 1928, operates more than 540 branches across all 50 states in the U.S. and 6 provinces in Canada, serving nearly 100,000 customers. The company provides a wide range of building materials, including roofing, siding, and waterproofing products. Beacon also offers a private label brand, TRI-BUILT®, and a digital account management suite, Beacon PRO+, which enables customers to manage their businesses online.

The acquisition is part of Beacon's ongoing effort to grow its national platform and reinforce its commitment to the waterproofing industry. The company's stock is traded on the Nasdaq Global Select Market.

This expansion is expected to strengthen Beacon's market position by integrating Smalley's specialized offerings and technical capabilities into its existing portfolio. The information about this acquisition is based on a press release statement.

InvestingPro Insights

As Beacon (NASDAQ:BECN) solidifies its market presence with the acquisition of Smalley & Company, investors and industry analysts are closely monitoring the company's financial health and stock performance. According to the latest metrics from InvestingPro, Beacon's market capitalization stands at a robust $6.29 billion.

Despite a challenging environment, the company has managed to achieve a revenue growth of 8.19% over the last twelve months as of Q4 2023. This is complemented by a significant quarterly revenue growth of 16.76% in Q4 2023, indicating a strong upward trend in the company's sales.

InvestingPro Tips suggest that Beacon's net income is expected to grow this year, aligning with the company's strategic expansion efforts. Still, investors should note that four analysts have revised their earnings expectations downwards for the upcoming period, which could indicate potential headwinds.

On the brighter side, Beacon has demonstrated a strong return over the last year with a 62.32% increase in its stock price, and analysts predict the company will be profitable this year. Beacon's liquid assets also exceed its short-term obligations, providing financial stability and flexibility.

Those looking for more insights can find additional InvestingPro Tips on Beacon by visiting https://www.investing.com/pro/BECN. To further enhance your investment strategies, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 10 more InvestingPro Tips available for Beacon, offering a deeper dive into the company's financials and market performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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