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Beacon expands Midwest presence with new acquisition

EditorNatashya Angelica
Published 16/04/2024, 01:26 am
BECN
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HERNDON, Va. - Beacon (NASDAQ:BECN), a distributor of building materials, has expanded its footprint in the Midwest with the acquisition of General Siding Supply, a company with a nearly 50-year history of supplying building contractors with siding, windows, and doors.

The acquisition, which includes General Siding's headquarters in Omaha, NE, and branches in four other locations, was finalized today, enhancing Beacon's service offerings and branch network in key markets.

General Siding Supply, now part of Beacon's regional operations, brings a specialized focus on siding products and a reputation for technical knowledge and service reliability. Jeff Spanheimer, President of General Siding, expressed enthusiasm for the merger, highlighting the benefits for customers, including access to Beacon's online ordering and delivery tracking system, Beacon PRO+.

Bill Sarvis, Beacon's Regional Vice President, Midwest, welcomed the Spanheimer family's business to Beacon, citing the acquisition as a strategic move that complements Beacon's existing product offerings.

The company has been actively expanding its market presence, with three completed acquisitions this year, adding twelve branches, and a fourth pending agreement. Additionally, Beacon has opened five new locations in 2024.

This growth is part of Beacon's "Ambition 2025" plan, which aims to drive above-market growth and better serve customers. The company has reported early achievement of its revenue and shareholder return targets under this plan and continues to pursue its full objectives.

Beacon, a Fortune 500 company founded in 1928, operates over 540 branches across the U.S. and Canada and serves nearly 100,000 customers. The company offers a range of building products, including its private label brand TRI-BUILT®, and supports its customers through its digital account management suite, Beacon PRO+.

The information in this article is based on a press release statement.

InvestingPro Insights

As Beacon (NASDAQ:BECN) continues to implement its "Ambition 2025" plan and expand its market presence through strategic acquisitions, investors are keeping a close eye on the company's financial health and stock performance.

According to recent data from InvestingPro, Beacon's market capitalization stands at a robust $6.18 billion. This reflects the company's significant presence in the building materials distribution sector and investor confidence in its growth strategy.

Despite not having paid dividends, Beacon has exhibited a strong price performance with a one-year total return of 72.92%, indicating that investors have been rewarded through substantial stock price appreciation. The company has also seen a considerable price uptick over the last six months, with a 39.04% increase. This bullish trend is further supported by a 20.71% three-month price total return, suggesting sustained positive momentum in the short term.

One of the InvestingPro Tips highlights that Beacon's net income is expected to grow this year, which could signal improving profitability and potentially enhance shareholder value. Another tip points out that the stock's Relative Strength Index (RSI) suggests it is in overbought territory, which could indicate a need for investors to monitor the stock closely for any potential price corrections.

For those interested in deeper analysis and additional insights, InvestingPro offers a comprehensive list of tips for Beacon, with expert commentary and detailed financial metrics. Readers can unlock these valuable resources by visiting https://www.investing.com/pro/BECN and using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

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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