Beacon Acquires Midway; Shares Up 2.1%


Beacon (BECN) has acquired Midway Sales & Distributing, Inc., a roofing and exteriors distributor in the Midwest area. The financial terms of the deal are currently being kept under wraps.

Beacon sells residential and non-residential roofing products, as well as building-related products in the United States. Beacon shares gained 2.1% to close at $53.96 on November 1. (See Beacon stock charts on TipRanks)

The addition of Midway will strengthen Beacon’s market position in the Midwest region. Midway provides residential and commercial exterior building and roofing supplies as well as a wide range of complementary products to contractors, homebuilders, and retail customers. It operates from 10 locations across Kansas, Missouri, and Nebraska, with annual sales of approximately $130 million.

Beacon CEO, Julian Francis, commented, “Expanding our depth of service in the Midwest will bring Midway customers the opportunity to benefit from Beacon’s digital solutions, TRI-BUILT product line and OTC network. With this acquisition, our strategic initiative for growth takes on a new lever, adding a high-quality team and key locations to further drive our performance.”

Meanwhile, Jefferies analyst Philip Ng recently reiterated a Hold rating on Beacon with the price target of $56 (3.8% upside potential). Analysts expect the company to report earnings of $0.80 per share for the fourth quarter of 2021.

Overall, the stock has a Moderate Buy consensus rating based on 4 Buys and 3 Holds. The average Beacon price target of $60.83 implies 12.73% upside potential from current levels. BECN shares have jumped 63.7% over the past year.

Related News:
Amazon Drops 4% after Missing Q3 Expectations and Muted Q4 Outlook
AptarGroup Reports Q3 Earnings In Line with Expectations, Sales Beat
Logitech Posts Mixed Fiscal Q2 Results

Stay Ahead of Everyone Else

Get The Latest Stock News Alerts