LafargeHolcim to Acquire Firestone Building Products in $3.4 Billion Deal

NASHVILLE, Tenn. — Multinational building materials manufacturer LafargeHolcim has signed an agreement to acquire Firestone Building Products for $3.4 billion.

Firestone Building Products, which manufactures commercial roofing products, brought in roughly $1.8 billion in sales in 2020. With this acquisition, LafargeHolcim will add 15 manufacturing facilities, 1,800 distribution points, and three R&D laboratories to its network. Upon completion of the sale, Firestone Building Products will continue to be headquartered in Nashville, Tenn., and all 1,900 employees will transition to LafargeHolcim.

The acquisition is expected to strengthen LafargeHolcim’s U.S. market, establishing a new growth profile and reaching $6 billion in annual net sales. Jan Jenisch, CEO of LafargeHolcim, called the move a strategic step to become a global leader in innovative and sustainable building solutions.

"I am excited to be entering the highly attractive roofing business," said Jenisch. "With Firestone Building Products we are strengthening our biggest market, the U.S., while also building a global growth and innovation platform for the company."

Jenisch added he has "great respect for the high-caliber leadership and expertise" of Firestone Building Products’ team and looks forward to welcoming them into the LafargeHolcim family.

"Today is a big moment for the Firestone Building Products team as we look forward to becoming part of the global leader in building materials and solutions," said Taylor Cole, Firestone Building Products president. "Together, we are in a prime position to accelerate our growth by combining Firestone Building Products’ advanced technologies and know-how with LafargeHolcim’s global scale and reach."

Urbanization trends are accelerating the development of the flat roof market, currently estimated at around $50 billion globally. By entering into this sector, LafargeHolcim plans on delivering above-market growth driven by innovative technologies and branding. It will also benefit from Firestone's position in the repair and refurbishment segment, which accounts for the majority of its sales today.

With up to 60% of a building's energy lost through its roof, Firestone Building Products plays a role in mitigating this process with cool roofs, insulation and waterproofing systems. In addition, its green roofs contribute to more sustainable urban environments. These technologies complement LafargeHolcim’s sustainable building solutions, from its ECOPact green concrete to its EcoLabel range, accelerating the company’s net zero commitment.

Firestone Building Products is a subsidiary of Bridgestone Americas. Paolo Ferrari, Bridgestone Americas president, CEO and COO, agreed that the transaction will create new growth opportunities for Firestone Building Products, and will allow Bridgestone to further invest in the company’s tire business and rapidly growing mobility solutions business.

"Like Bridgestone, LafargeHolcim is a global company with a strong financial position and thriving culture," said Ferrari. "We know they will take great care of our Firestone Building Products employees and customers, and ensure the business enjoys growth and success for many years to come."

Founded in 1980, Firestone Building Products is a business unit of Bridgestone Americas and part of Tokyo-based Bridgestone Corporation, a global leader providing tires and sustainable mobility solutions. 

Atlas Roofing Corporation Opening New State-of-the-Art Shingle Laminating Line in Oklahoma

ATLANTA — Atlas Roofing Corporation announced it will build a new shingle laminating line at its Ardmore, Okla., facility. Construction of the state-of-the-art line is scheduled to begin in the first quarter of 2021 with an anticipated startup in the fourth quarter of 2021. Current Ardmore production will continue while the new line is completed.

"The Ardmore facility and its people are a big part of Atlas and our history," said Mike McCaig, vice president of operations for the Atlas shingles and underlayment division. "We have a great team at Ardmore and building a new line at this site will help make it competitive for many years to come."

The new laminating line will create a significant increase in Atlas' overall laminate shingle capacity and will create efficiencies throughout the plant to help increase overall output. The existing facility has been operating since 1960 and technology in the production of asphalt shingles has changed significantly since then.

"This new asphalt shingle line will help strengthen our value proposition to customers throughout the country as it will allow for growth and service area enhancements at all Atlas facilities," said Stanley Bastek, vice president of sales and marketing for the Atlas shingles and underlayment division. "We're excited to be adding this laminate shingle line to grow the Pinnacle line of Scotchgard Protector products at Ardmore, and we will be exploring opportunities for new, innovative shingle and accessory products in the near future."

The increased capacity in the Ardmore facility will make a significant contribution to the Atlas Roofing Corporation family of products. Atlas designer shingles with Scotchgard Protector provides assurance to homeowners with the longest lasting, most durable shingle on the market.

HERNDON, Va. — Beacon announced that Chief Operating Officer C. Eric Swank will be leaving the company at the end of February.

During his 16-year career at Beacon, Swank served in senior executive roles of increasing importance and ultimately led Beacon's $6-billion exterior products business for the last two years. His tenure and service with the company have been marked by many significant accomplishments that helped build Beacon from a $600 million organization into a $7 billion Fortune 500 company.

“Eric’s dedication to Beacon, its employees and customers in each of his roles has been critical to Beacon's success over the past 16 years. He helped create a culture of operational excellence throughout the company that has driven shareholder value while building great teams who embody his passion for our customers,” said Julian Francis, Beacon’s president and CEO. “I wish Eric all the very best in his future endeavors, and I know he will bring great skill and determination to any pursuit.”

Swank said leading and being part of Beacon’s growth from a large regional player to the nation’s largest publicly traded roofing distributor has been incredibly rewarding for him during his career.

“I could not be more appreciative to have had the opportunity to be part of such a great organization and work with such fine people, both internally and externally,” said Swank. “Along the way, the careers and lives I have been able to touch and be part of will forever be some of my fondest memories. Beacon is made up of individuals who wake up every day with a desire to help our customers build a better future for themselves and the communities they serve. I look forward to watching that continue for many years to come.”

Beacon Roofing Supply Announces the Departure of COO C. Eric Swank

Department of Labor Issues Final Rule to Clarify Independent Contractor Status

WASHINGTON, D.C. — The U.S. Department of Labor released a final rule clarifying the standard for employee versus independent contractor status under the Fair Labor Standards Act (FLSA).

“This rule brings long-needed clarity for American workers and employers,” said U.S. Secretary of Labor Eugene Scalia. “Sharpening the test to determine who is an independent contractor under the Fair Labor Standards Act makes it easier to identify employees covered by the Act, while recognizing and respecting the entrepreneurial spirit of workers who choose to pursue the freedom associated with being an independent contractor.”

The Final Rule includes the following clarifications:

• Reaffirms an “economic reality” test to determine whether an individual is in business for him or herself (independent contractor) or is economically dependent on a potential employer for work (FLSA employee). 
• Identifies and explains two “core factors” that are most probative to the question of whether a worker is economically dependent on someone else’s business or is in business for him or herself:
  • The nature and degree of control over the work.
  • The worker’s opportunity for profit or loss based on initiative and/or investment.
• Identifies three other factors that may serve as additional guideposts in the analysis, particularly when the two core factors do not point to the same classification. The factors are:
  • The amount of skill required for the work.
  • The degree of permanence of the working relationship between the worker and the potential employer.
  • Whether the work is part of an integrated unit of production.
• The actual practice of the worker and the potential employer is more relevant than what may be contractually or theoretically possible.
• Provides six fact-specific examples applying the factors.

The rule will take effect 60 days after publication on the Federal Register, on March 8, 2021.

“Streamlining and clarifying the test to identify independent contractors will reduce worker misclassification, reduce litigation, increase efficiency, and increase job satisfaction and flexibility,” said Wage and Hour Division Administrator Cheryl Stanton. “The rule we announced ... continues our work to simplify the compliance landscape for businesses and to improve conditions for workers. The real-life examples included in the rule provide even greater clarity for the workforce.”