Beacon Announces Pricing of Secondary Offering of Common Stock
Building materials distributor Beacon (NASDAQ: BECN) has revealed the pricing of a secondary public offering of its common stock. The offering, which comprises 5,218,134 shares, is being made by CD&R Boulder Holdings, L.P., an entity associated with private equity firm Clayton, Dubilier & Rice, LLC. RBC Capital Markets is acting as the exclusive underwriter for the offering, which is set to close on January 22, 2024, subject to customary closing conditions.
CD&R Boulder Holdings to Sell Over 5 Million Shares of Beacon Common Stock
CD&R Boulder Holdings, L.P., in association with private equity firm Clayton, Dubilier & Rice, LLC, will be selling 5,218,134 shares of Beacon’s common stock in a secondary public offering. The offering will allow the selling stockholder to receive all proceeds from the sale and will result in the complete divestment of their holdings in Beacon. This represents an important transaction for CD&R Boulder Holdings.
RBC Capital Markets to Underwrite Secondary Public Offering for Beacon
RBC Capital Markets has been selected as the exclusive underwriter for Beacon’s secondary public offering. The underwriter will be responsible for managing the sale of the 5,218,134 shares of common stock being offered by CD&R Boulder Holdings, L.P. RBC Capital Markets will ensure that the offering is conducted in accordance with regulatory requirements and will work to achieve the best possible outcome for the selling stockholder.
Beacon Will Not Benefit Financially from Secondary Offering, Only Selling Stockholder
Beacon itself will not be selling any shares in the secondary offering and will not receive any financial benefit from the transaction. Instead, all proceeds from the sale will go to CD&R Boulder Holdings, L.P., the selling stockholder. Beacon will, however, bear the costs associated with the sale, excluding underwriting discounts, commissions, and certain expenses of the selling stockholder. It is important to note that Beacon’s financial position will remain unchanged as a result of this offering.
Beacon Provides Digital Account Management Through Beacon PRO+
Established in 1928, Beacon is a Fortune 500 company that operates in the United States and Canada. The company supplies roofing materials and other building products to a wide range of customers. In addition to its physical distribution network, Beacon offers digital account management through its platform called Beacon PRO+. This digital offering allows customers to manage their accounts online, providing convenience and efficiency in the procurement process.
The press release included forward-looking statements about Beacon’s future, in accordance with the Private Securities Litigation Reform Act of 1995. However, it should be noted that actual results may differ as a result of various factors, as detailed in Beacon’s filings with the Securities and Exchange Commission.
Disclaimer: This article was generated with the use of artificial intelligence and reviewed by an editor. The information provided does not constitute investment advice. Please seek independent financial advice before making any investment decisions.
Analyst comment
Neutral: Beacon Announces Pricing of Secondary Offering of Common Stock
As an analyst, it is expected that the market will respond neutrally to this news. The secondary offering of Beacon’s common stock will allow CD&R Boulder Holdings to divest its holdings in Beacon, with all proceeds going to the selling stockholder. Beacon will bear the costs associated with the sale but will not benefit financially. The market may monitor the impact on Beacon’s financial position but will likely be more focused on other market factors.
