2023-07-07 08:19:48 ET
- Roofing materials company Beacon Roofing Supply ( NASDAQ: BECN ) said on Friday that it is set to repurchase 400K outstanding shares of its series A cumulative convertible participating preferred stock held by CD&R's affiliate for $804.5M.
- The company has reached an agreement with Clayton, Dubilier & Rice for the repurchase.
- The transaction, to be financed by a mix of new and existing debt funding and cash on hand, is expected to close no later than Aug. 11.
- Also, the company said that CD&R's CEO Nathan Sleeper will resign from the board on closing of the transaction.
- And, CD&R's operating partner, Philip Knisely, will step down as the company's non-executive board chair. The company's lead independent director, Stuart Randle, will be named non-executive board chair.
- Separately, the company said its Q2 net sales are expected to be ~$2.5B, vs. consensus of $2.45B.
- Gross margins are expected to be ~25.4%.
- Net income is estimated to range between $147M and $154M.
- GAAP EPS is expected to range between $1.88 per share and $1.97 per share.
- Adjusted EBITDA is estimated to range between $280M and $290M.
- For FY23, adjusted EBITDA is expected to range between $840M and $870M.
- BECN shares were trading +0.79% pre-market.
- Source: Press Release
For further details see:
Beacon Roofing Supply to repurchase outstanding shares of preferred stock