Beacon to Acquire 100% ESOP-Owned Smalley & Company

Smalley & Company, a regional specialty waterproofing distributor, has been providing tailored sealant and waterproofing solutions to contractors, design professionals, and owners since 1967. In fact, it has become an industry leader through its dedication to being a vital link in the supply chain to contractors that perform a wide range of applications in the new construction and restoration markets. It has a presence in 11 locations in Colorado, Arizona, California, Nevada, New Mexico and Utah.

Smalley is a privately held company and is 100% owned by an Employee Stock Ownership Plan and Trust (ESOP). The transaction is subject to a majority vote of the plan’s participants, giving the ESOP Trustee authorization to approve the sale.Research

Shares of Beacon — the largest distributor of residential and non-residential roofing materials in the United States and Canada — surged 78% compared with the Building Products - Retail industry’s 26.1% growth in a year.

Strategic Efforts to Boost Sales in the Future

Beacon has undertaken several strategic initiatives to drive its long-term ambition of growing and enhancing customer experience. One of the primary initiatives includes footprint expansion and increasing its market reach. Beacon is targeting business expansion through bolt-on acquisitions, divestitures and new branch openings.

The company has been focusing on its Ambition 2025 targets (announced on Feb 24, 2022), which emphasize operational excellence, an above-market growth trajectory and accelerated stockholder value creation. The financial targets of Ambition 2025 assume that sales will reach $9 billion (8% CAGR) and $1 billion of EBITDA (10% CAGR), which would translate into an 11% EBITDA margin (up 100 basis points from 2021). Impressively, the company exceeded its Ambition 2025 revenue and shareholder return targets for 2023. BECN continues to achieve its further Ambition 2025 growth targets.

Since the announcement of the Ambition 2025 strategic plan, Beacon acquired 16 companies, which added 50 branches to its portfolio. The company expanded its footprint by opening three new locations and completing two acquisitions in the first three months of 2024.

A solid residential backdrop, exceptional operating cost management and cash flow, a focus on the e-commerce platform, a new On-Time and Complete Delivery Network and a newly designed website are likely to help BECN gain further.

As see in Yahoo Finance