Holcim signed an agreement to acquire Malarkey Roofing Products, a leading company in the US residential roofing market with projected 2022 net sales of $600 million and EBITDA of $120 million.
Malarkey Roofing Products has a track record of double-digit growth in the highly profitable, $19 billion U.S. residential roofing market.
Malarkey is fully complementary to Firestone Building Products’ leadership in the commercial segment, positioning Holcim as a full roofing provider.
Malarkey’s strong brand recognition is driven by its leadership in innovation and sustainability with a highly circular business model.
“We are off to a strong start to our ‘Strategy 2025—Accelerating Green Growth’ with the acquisition of Malarkey Roofing Products, expanding our Solutions & Products business to become a global leader in roofing systems," CEO Jan Jenisch said. "I congratulate the Malarkey family for what they have achieved and am committed to investing in the company’s continued success to unleash its next era of growth together. Our companies are highly complementary with many upsides. I am impressed by the Malarkey brand, the innovative technology, the great network of production facilities and most importantly, purpose-driven employees who are vital for the company’s sustainable growth and national expansion plan. I am excited to further strengthen the Malarkey brand and legacy and welcome all employees and sites into the Holcim family.”
“We couldn’t be more thrilled. For decades, we’ve sought a company that agrees with our vision, aligns with our values, and can help us accelerate our growth strategy," added Gregory Malarkey, president of Malarkey Roofing. ". . .[W]e found it in Holcim. Like Malarkey, Holcim has a strong focus on driving the circular economy and leading the transition towards sustainable construction. It’s a very exciting time for both brands. To our employees, customers, partners, contractors, and friends, who continue to support our company and mission, thank you! You’ve witnessed first-hand the market’s rapid acceptance of our unique value proposition. With Holcim’s knowledge and resources, we can extend that value proposition to even more consumers. We’re just getting started.”
This transaction is valued at $1.35 billion, to be financed with 100% cash. Synergies of $40 million per year are expected on a run-rate basis to be realized by year three. The acquisition is earnings per share (EPS) accretive from the first year.
Malarkey Roofing Products was founded by Herbert Malarkey in 1956 and is headquartered in Portland, Oregon. It provides complete solutions for residential roofing needs from roofing shingles to ice and water barriers. With production facilities in Oregon, California and Oklahoma, Malarkey Roofing Products has a strong presence from the West to the South of the US that is highly complementary to Firestone Building Products’ footprint.
It is expected to close in the first quarter of 2022.