Roofing materials and building products distributor Beacon Roofing Supply, Inc. (NASDAQ: BECN) recently announced the acquisition of Crabtree Siding and Supply, a Tennessee-based wholesale distributor of exterior building materials. The financial terms of the deal have not been disclosed so far.
Following the news, shares of the company rose 1.1% to close at $57.35 on Friday.
With annual sales of about $1 million, Crabtree’s acquisition will allow Beacon to gain access to the company’s supply chain capabilities. Further, Crabtree’s attractive location in the burgeoning market between Nashville and Knoxville is expected to be beneficial for Beacon.
The President of the South Division for Beacon, Munroe Best, said, “We are pleased to welcome Crabtree to Beacon’s team. Their history of excellent customer service and supplier relations, combined with a superior location, will allow us to further grow Beacon’s presence in Tennessee, particularly this important but underserved area of the state.”
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The Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 4 Buys, 4 Holds and 1 Sell. The average Beacon stock prediction of $61.31 implies that the stock has upside potential of 6.9% from current levels. Shares have gained about 44.3% over the past year.
News Sentiment for Beacon is Neutral based on 4.5 articles over the past seven days. As much as 50% of the articles have Bullish sentiment, compared to the sector average of 62%.
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