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Beacon (BECN) Expands in New England With Whitney Buyout
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Beacon Roofing Supply, Inc. (BECN - Free Report) has acquired Boston’s distributor of commercial and multifamily waterproofing and restoration products — Whitney Building Products, LLC. However, financial terms of the transaction have not been disclosed. This move is in line with Beacon’s Ambition 2025 investment strategy.
With an experience of more than 75 years of serving the construction and restoration industry in New England, Whitney is a solid addition to the Beacon portfolio.
Acquisitions a Boon
Beacon has undertaken several strategic initiatives to drive its long-term ambition of growing and enhancing the customer experience, expanding the top line and margin and boosting value for customers, suppliers, employees and shareholders.
In February 2022, the company unveiled Ambition 2025 targets, which emphasized its winning culture, operational excellence, above-market growth trajectory and accelerated stockholder value creation. It projects net sales of $9 billion at a CAGR of 8%, adjusted EBITDA of $1 billion at a CAGR of 10%, significant cash flow generation, net leverage of 2.5 times targeted 2025 adjusted EBITDA (resulting in $2.8 billion of investment capacity), and strategic deployment of capital on mergers & acquisitions, growth investments and share repurchases to produce superior returns.
Beacon has been focusing on business expansion through bolt-on acquisitions and divestitures. Recently, it announced the acquisition of Coastal Construction Products, one of the largest independent distributors of specialty waterproofing and associated products in the United States.
During the first nine months of 2022, the company made three acquisitions. In June 2022, BECN acquired Complete Supply, Inc., a distributor of residential roofing and exterior building supplies to contractors and homebuilders in Willowbrook, IL.
Image Source: Zacks Investment Research
Shares of Beacon — the largest distributor of residential and non-residential roofing materials in the United States and Canada — have outperformed the industry in the past year.
Tecnoglass currently sports a Zacks Rank #1. Shares of the company have gained 17.2% in the past year.
The Zacks Consensus Estimate for TGLS’ 2023 sales and earnings per share (EPS) suggests growth of 11.2% and 9%, respectively, from the year-ago period’s reported levels.
Wingstop currently sports a Zacks Rank #1. WING has a long-term earnings growth rate of 12%. Shares of WING have lost 20.1% in the past year.
The Zacks Consensus Estimate for Wingstop’s 2023 sales and EPS suggests growth of 18.4% and 16.1%, respectively, from the year-ago period’s reported levels.
Yum China currently carries a Zacks Rank #2 (Buy). YUMC has a long-term earnings growth rate of 11%. Shares of YUMC have gained 10.3% in the past year.
The Zacks Consensus Estimate for Yum China’s 2023 sales and EPS suggests growth of 14.2% and 56.7%, respectively, from the year-ago period’s reported levels.
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Beacon (BECN) Expands in New England With Whitney Buyout
Beacon Roofing Supply, Inc. (BECN - Free Report) has acquired Boston’s distributor of commercial and multifamily waterproofing and restoration products — Whitney Building Products, LLC. However, financial terms of the transaction have not been disclosed. This move is in line with Beacon’s Ambition 2025 investment strategy.
With an experience of more than 75 years of serving the construction and restoration industry in New England, Whitney is a solid addition to the Beacon portfolio.
Acquisitions a Boon
Beacon has undertaken several strategic initiatives to drive its long-term ambition of growing and enhancing the customer experience, expanding the top line and margin and boosting value for customers, suppliers, employees and shareholders.
In February 2022, the company unveiled Ambition 2025 targets, which emphasized its winning culture, operational excellence, above-market growth trajectory and accelerated stockholder value creation. It projects net sales of $9 billion at a CAGR of 8%, adjusted EBITDA of $1 billion at a CAGR of 10%, significant cash flow generation, net leverage of 2.5 times targeted 2025 adjusted EBITDA (resulting in $2.8 billion of investment capacity), and strategic deployment of capital on mergers & acquisitions, growth investments and share repurchases to produce superior returns.
Beacon has been focusing on business expansion through bolt-on acquisitions and divestitures. Recently, it announced the acquisition of Coastal Construction Products, one of the largest independent distributors of specialty waterproofing and associated products in the United States.
During the first nine months of 2022, the company made three acquisitions. In June 2022, BECN acquired Complete Supply, Inc., a distributor of residential roofing and exterior building supplies to contractors and homebuilders in Willowbrook, IL.
Image Source: Zacks Investment Research
Shares of Beacon — the largest distributor of residential and non-residential roofing materials in the United States and Canada — have outperformed the industry in the past year.
Zacks Rank & Key Picks
Beacon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Retail-Wholesale sector are Tecnoglass Inc. (TGLS - Free Report) , Wingstop Inc. (WING - Free Report) and Yum China Holdings, Inc. (YUMC - Free Report) .
Tecnoglass currently sports a Zacks Rank #1. Shares of the company have gained 17.2% in the past year.
The Zacks Consensus Estimate for TGLS’ 2023 sales and earnings per share (EPS) suggests growth of 11.2% and 9%, respectively, from the year-ago period’s reported levels.
Wingstop currently sports a Zacks Rank #1. WING has a long-term earnings growth rate of 12%. Shares of WING have lost 20.1% in the past year.
The Zacks Consensus Estimate for Wingstop’s 2023 sales and EPS suggests growth of 18.4% and 16.1%, respectively, from the year-ago period’s reported levels.
Yum China currently carries a Zacks Rank #2 (Buy). YUMC has a long-term earnings growth rate of 11%. Shares of YUMC have gained 10.3% in the past year.
The Zacks Consensus Estimate for Yum China’s 2023 sales and EPS suggests growth of 14.2% and 56.7%, respectively, from the year-ago period’s reported levels.