Beacon announced today that it has entered into an accelerated share repurchase agreement (“ASR”) with Citibank N.A to repurchase $225 million of Beacon’s common stock.
“Creating shareholder value is central to today’s announcement to continue share repurchases under our previously announced and authorized program,” said Julian Francis, President & CEO of Beacon. “We continue to pursue our balanced capital allocation plan investing in growth and returns to shareholders. Our Ambition 2025 plan has demonstrated our ability to do both and, at the same time, deliver on margin improvement and cash flow. This ASR further emphasizes our confidence in the resiliency of our business model and our team’s strong execution.”
Under the ASR, Beacon will make a pre-payment of $225 million to Citibank, N.A and will initially receive a prorated quantity of Beacon’s common stock. The final number of shares to be repurchased will be based on the daily volume-weighted average price of Beacon’s common stock during the term of the ASR, less a discount and subject to adjustments pursuant to the terms of the ASR. The final settlement of the ASR is expected to be completed in the fourth quarter of 2024.
About Beacon
Founded in 1928, Beacon is a Fortune 500, publicly traded distributor of building products, including roofing materials and complementary products, such as siding and waterproofing. Beacon operates over 550 branches throughout all 50 states in the U.S. and 7 provinces in Canada. Beacon serves an extensive base of nearly 100,000 customers, utilizing its vast branch network and diverse service offerings to provide high-quality products and support throughout the entire business lifecycle. Beacon offers its own private label brand, TRI-BUILT®, and has a proprietary digital account management suite, Beacon PRO+, which allows customers to manage their businesses online. Beacon’s stock is traded on the Nasdaq Global Select Market under the ticker symbol BECN.
