Beacon Roofing Supply, Inc. BECN, the distributor of residential and commercial roofing materials and complementary building products, has taken over Woodfeathers, Inc. The acquisition will help in the expansion of Beacon Roofing’s capacity in the key Pacific Northwest market.
Headquartered in Portland, OR, Woodfeathers is a distributor of primarily residential roofing and related products. The company has four branches, with Oregon locations in Portland, Beaverton, and Oregon City and one location in Vancouver, Washington. The buyout which is a strategic fit will drive Beacon Roofing’s growth in residential roofing distribution market.
Beacon Roofing has expanded its business through well-planned takeovers and diversification of its product offerings. In Oct 2015, Beacon Roofing acquired Roofing Supply Group (RSG) for approximately $1.1 billion which will help expand its geographic footprint, product diversification and be accretive to earnings by 30 cents in fiscal 2016.
Again in Dec 2015, Beacon Roofing acquired three companies – RCI Roofing Supply of Omaha, Roofing and Insulation Supply of Dallas, and Statewide Wholesale of Denver. These buyouts will provide the company additional geographic and product density. In Apr 2016, Atlantic Building Products and Lyf-Tym Building Products were bought by Beacon Roofing.
Beacon Roofing also announced the takeover of Fox Brothers Company, which sells complementary and residential roofing products. This acquisition improves its presence in the central and southern Michigan area with a scope for expansion in future.
Moreover, Beacon Roofing is poised to benefit from acquisitions, growth in residential and non-residential building construction activities as well as sustained demand in re-roofing activity.
Beacon Roofing currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth considering in the sector include BMC Stock Holdings, Inc. STCK, The Home Depot, Inc. HD and Lowe's Companies, Inc. LOW. While BMC Stock Holdings sports a Zacks Rank #1 (Strong Buy), both The Home Depot and Lowe's Companies carry a Zacks Rank #2 (Buy).
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