Beacon Roofing sees $135M-$140M non-cash charge on brand change
As previously reported, Beacon announced that its 40 brands across the U.S. and Canada that sell exterior products will now be named Beacon Building Products. In connection with the rebranding, the company has determined that it will incur non-cash accelerated intangible asset amortization of approximately $135M-$140M related to the write-off of certain tradenames, primarily Allied, Roofing Supply Group and JGA. The accelerated amortization will be recognized in the company's fiscal quarter ending March 31, 2020. The physical rebranding of branch locations and equipment is expected to result in cash expenditures of approximately $5M, the company added in a regulatory filing.