FirstService Corporation recently announced that it has acquired Roofing Corp of America, one of North America’s largest commercial roofing enterprises. And the addition is highly complementary to FirstService’s existing portfolio of market-leading essential property services brands, adding to its property repair, maintenance, and restoration capabilities.
Based in Atlanta, Georgia, Roofing Corp delivers a wide range of end-to-end roofing services, including re-roofing, repair and maintenance, and new roof installations, to building owners, property and facility managers, homeowners’ associations, and general contractors. RCA operates from 16 regional branch locations across 11 U.S. states – spanning the Sun Belt, Mid-Atlantic, Midwest, and West regions and employs over 900 highly trained professionals. Roofing Corp generates annual revenues of about $400 million with operating margins that are modestly higher than the consolidated margin profile across FirstService.
Under the terms of the deal, FirstService will acquire a significant controlling interest for a purchase price of US$413 million, with RCA’s senior leadership team, including Randy Korach, Chief Executive Officer, retaining the balance of the equity and continuing to operate the business in the future. And the purchase price will be funded through a combination of cash on hand and funds drawn under FirstService’s existing revolving bank credit facility, which now has total borrowing capacity of $1.25 billion after the recent exercise and bank syndicate approval of the $250 million accordion feature.
KEY QUOTES:
“We are delighted to be partnering with FirstService, which brings a like-minded culture and strategic vision. FirstService’s partnership philosophy combined with its strong balance sheet will enable us to continue to drive our growth and vision of becoming the national market-leading player in the commercial roofing industry. Finding the perfect home for our highly dedicated team members was central to our decision in choosing a partner. We are convinced we found the right home in FirstService.”
- Randy Korach, CEO of RCA
“Roofing Corp offers a unique opportunity to add a leading commercial roofing services enterprise with significant scale, strong leadership and a broad geographic footprint. Roofing shares many of the same attractive characteristics as our other businesses in terms of being an essential property service operating in a large, highly fragmented industry with significant growth potential. We see strong alignment with the team across RCA and are excited about working together to build the premier roofing contractor in North America. On behalf of our entire organization, I would like to welcome Randy and the rest of the RCA team to the FirstService family.”
- Scott Patterson, CEO of FirstService
