Beacon has acquired Jacksonville, Fla.-based Coastal Construction Products, an independent distributor of specialty waterproofing products, from the company’s majority owner, Supply Chain Equity Partners (SCEP), a private equity firm focused on the distribution sector. The acquisition is Beacon’s fifth in the last 12 months and the third since the launch of its Ambition 2025 goals in February. The distributor completed the acquisitions of Illinois-based Complete Supply in June and Texas-based Wichita Falls Builders Wholesale in April.
Beacon currently sells waterproofing products throughout its commercial and residential roofing branches as well as 13 specialty waterproofing locations in the Western U.S. Coastal Construction Products operates 18 locations dedicated to waterproofing serving the Southeast and Midwest. According to Beacon, the combination creates an unparalleled opportunity to leverage a coast-to-coast footprint to better serve customers locally, regionally, and nationally. Beacon’s new specialty waterproofing division will be led by Coastal’s CEO Martin Harrell.
“SCEP has been a great partner and we are grateful for their help in achieving our Vision 2025,” Harrell said in a news release. “They allowed us to grow much faster than we could have done on our own by funding and supporting our internal growth initiatives as well as fast-tracking our greenfield and acquisition program.”
Harrell said the partnership with Beacon allows Coastal to bring its customers the benefits of Beacon’s North American footprint and “specialized capabilities designed to accelerate growth and enhance profitability.”
“We are thrilled to welcome Coastal’s over 200 employees to the Beacon team. Their core values, customer-focused service model, and depth of waterproofing expertise are an ideal fit as we continue to progress toward the Ambition 2025 goals we announced in February,” Julian Francis, Beacon’s president and CEO, said. “Expanding nationwide access to waterproofing products enhances our value proposition to our commercial and multifamily customers and provides the opportunity to build more together.”
Coastal’s estimate full year 2022 revenue and EBITDA (earnings before interest, taxation, depreciation, and amortization) are expected to be approximately $250 million and $25 million, respectively. Beacon expects to continue to report waterproofing revenues as part of its complementary line of business.
In addition to its expansion through acquisition, Beacon has opened several greenfield locations in recent months as part of its Ambition 2025 strategy. The distributor opened three branches in Texas in Lubbock, College Station, and Sherman, and branches in Hampton, Va., and Leitchfield, Ky.