Beacon Roofing Supply Inc, [NASDAQ: BECN] reported that the company signed a contract with affiliates of American Securities to divest its Interior Products Division. The business currently consists of branches at 81 locations. It supplies products related to construction such as wallboard steel farming and insulation etc. The company distributes its products to both commercial and residential contractors.
Beacon will divest the Interior Product for $850M in cash which is subject to net working capital and other adjustments. Furthermore, The Company plans to utilize the expected after-tax proceeds of around $750M from this divestiture to lessen net use and fortify its balance sheet.
“ Today’s statement depicts an important strategic decision for Beacon. After thorough analysis, we came to the decision that divesting the Interior Product is best for our customers and shareholders. This step will help boost our efforts to enhance our balance sheet.” said Julia Francis CEO of Beacon