Beacon Roofing Supply, the No. 3 company on the ProSales 100, announced today it has agreed to buy the McClure-Johnston Co., an $85 million distributor of residential and commercial roofing products with operations in four states.
Based outside Pittsburgh in Braddock, Pa., 98-year-old McClure-Johnston has eight locations in Pennsylvania, three in West Virginia, one in western Maryland, and two in Georgia. They join the 210 branches in 38 states across the U.S. and Canada that already are run by Beacon, which tallied $1.9 billion in sales in 2011.
The deal is expected to close by or on Nov. 1 at the same time a definitive purchase agreement is reached. Current plans are to keep the McClure-Johnston management team in place and the same name on the store signs, a Beacon official said.
In a statement issued by Beacon, McClure-Johnston president Brian Hogan said of the Peabody, Mass.-based company that "of all the possible merger partners in the industry, Beacon best fit McClure-Johnston's culture of hard work, integrity, and a commitment to employees and customers. I look forward to leading our dedicated and knowledgeable staff as we join forces with Beacon."
Today's announcement comes a month after Beacon made two Missouri-based announcements the same day: it acquired Contractors Roofing & Supply, a one-location supplier based in O'Fallon, Mo., and planned to open a new location in St. Louis under the Roof Depot brand name. And in July, Beacon acquired Structural Materials Co., a residential and commercial roofing products distributor with six locations spread throughout Los Angeles and Orange counties.
On Aug. 7, Beacon reported its net income rose 5% in its fiscal third quarter ended June 30 to reach $25.4 million on 4% growth in net sales to a third-quarter record of $560.5 million.