Midway Wholesale Sold To Beacon Roofing

By Michael Hooper

Midway Wholesale, a Topeka-based supplier of building and roofing supplies, recently sold to Beacon Roofing Supplies, a Fortune 500 company.

Midway Wholesale has 170 employees and $130 million annual sales in 10 stores in Kansas, Missouri and Nebraska. Founded by Kenneth Daniel in 1970, Midway Wholesale was incorporated in 1974 at 218 SE Branner, Topeka.

Beacon is a publicly-traded company that distributes roofing supplies and building products in 400 locations in 50 states. The company's stock is traded under the symbol (BECN). 

In a press release dated Nov. 1, 2021, Beacon said, "Midway Wholesale has built a strong reputation for quality and reliability serving customers at 10 locations across Kansas, Missouri and Nebraska. With annual sales of approximately $130 million, the acquisition deepens Beacon’s already strong presence in the Midwest."

“The Midway team looks forward to joining forces with Beacon. Our business has grown successfully since incorporation in 1974 by providing customers with superior service and taking care of our employees,” said John Ossello, Vice President, Midway. “We look forward to the investments Beacon will be able to make that further our partnership with customers and develop our team’s potential.”

The same press release includes a statement from Beacon's CEO, “We are pleased to welcome Midway’s employees and customers to the Beacon team as we help build the next chapter of the company’s story,” said Julian Francis, President & CEO of Beacon. “Expanding our depth of service in the Midwest will bring Midway customers the opportunity to benefit from Beacon’s digital solutions, TRI-BUILT product line and OTC® network. With this acquisition, our strategic initiative for growth takes on a new lever, adding a high-quality team and key locations to further drive our performance.”

I interviewed Ken Daniel multiple times over the years. He is a founder of the Topeka Independent Business Association. He supported efforts by small businesses to increase access to health insurance.

Ken Daniel was elected to Junior Achievement's Topeka Business Hall of Fame. He is widely regarded as one of the sharpest minds in business. Lisa Loewen wrote a story about Ken Daniel for TK Magazine March 2020.

I tried to reach Ken Daniel for this article but have not been successful yet.

Ken is a personable man who excelled at sales and management. He hired the right people and promoted them.

But in the beginning, it was just Ken Daniel in a tiny office at 218 SE Branner. He told me he started in 1970 as a manufacturer's representative in Topeka, a position that grew into forming his own company.

One time, Ken actually took me inside the tiny room, where he got started. It was a dusty old room with gray walls, more of a storage area when I saw it. He said as business got bigger, he took over more and more space inside the old building, eventually acquiring the entire building. Midway Wholesale's Topeka operation is next to the BNSF Railway tracks. To expand operations, Midway Wholesale purchased some land from BNSF.

In 2008, Kenneth Daniel, chairman, retired as chief executive officer at the company's annual stockholders meeting. Bruce H. Myers, president since 1999, was elected chief executive officer and president. John D. Ossello has been vice president since 1999.

Midway Wholesale originally started out as a roof coating business for the elevator industry. The business transitioned into a commercial roofing distributor. And later expanding into construction materials. Now the company sells products for both residential and commercial properties. "Buildings can now have Midway Wholesale materials all the way from their foundations to their rooftops," the company says.

Midway Wholesale's other locations are in Lawrence, Manhattan, Garden City, Overland Park, Salina, Wichita, St. Joseph, Mo., Joplin, Mo., and Grand Island, Neb.

Beacon Roofing Supplies is a gigantic company with more than $7 billion in annual sales. The company was founded in Charlestown, Mass., in 1928. Corporate headquarters is now in Herndon, Va.

Beacon did not disclose how much it paid for Midway Wholesale. My analysis says a company with $130 million in sales and a tight net profit margin of 4.5% would generate $5.8 million in profit annually. At 10 times earnings, that would make the company worth $58 million.