Residential Roofing Services M&A Update: Q1 23
Published April 17, 2023
Key Insights:
- Trends Driving M&A in Residential Roofing Services
- Select PE Backed Strategic Investor Profiles
- Recent M&A Activity
Trends Driving M&A in Residential Roofing Services
- Private equity investors have taken an interest in the residential roofing services industry over the past 12 months with several early movers beginning to execute on consolidation strategies.
- Roofing services is viewed as a non-discretionary service with typically high average ticket prices and consistent labor input cost structure. This dynamic coupled with the steady, long-term growth outlook from an increasing addressable market of homes, has created attractive industry tailwinds for investors.
- The highly fragmented market provides the ability for private equity firms to execute on regional buy-and-build strategies in key geographies by acquiring several local brands to realize the benefits and efficiencies of scale.
- As demonstrated by Infinity Home Services and Stronghouse Solutions, there is also opportunity to expand into complementary exterior home services to provide a more comprehensive service offering to a homeowner and increase wallet share.
Select PE-Backed Strategic Investor Profiles
Ownership: Lightbay Capital / Freeman Spogli
Description:
- Provider of residential roofing and exterior remodeling services
- 9 Brands located across 8 states including WA and OR
Recent Acquisitions:
Ownership: 02 Investment Partners
Description:
- Provider of roofing and exterior home services
- 6 Brands with 27 locations (including WA and ID) and coverage across 36 states
Recent Acquisitions:
Ownership: Halmos Capital
Description:
- Provider of roof repair and replacement services to residential customers
- 2 Brands across GA and NH
Recent Acquisitions:
Recent M&A Activity
| Date | Company | Acquirer |
|---|---|---|
| Mar-23 | Music City Roofers | Feazel Roofing |
| Feb-23 | Universal Roofing & Exteriors | Elite Claim Solutions |
| Feb-23 | Master Roofers | Northpoint Roofing Systems |
| Feb-23 | Northpoint Roofing Systems | Halmos Capital Partners, NewSpring Capital |
| Jan-23 | Infinity Roofing And Siding | Stronghouse, O2 Investment Partners |
| Dec-22 | Infinity Exteriors | Freeman Spogli, LightBay Capital |
| Dec-22 | WeatherShield Roofing & Sheetmetal | Roofing Corp of America, Soundcore Capital Partners |
| Nov-22 | Nu-Tek Roof Systems | B&B Siding and Roofing |
| Nov-22 | McHale Roofing | Grove Oaks Capital |
| Nov-22 | Roof Depot | Copley Equity Partners |
| Oct-22 | Valentine Roofing | Infinity Exteriors, North Branch Capital |
| Sep-22 | Janney Construction Services | Bessemer Investors, Legacy Restoration |
| Sep-22 | Couto Construction | Infinity Exteriors, North Branch Capital |
Meridian Capital's Industrial & Residential Services Transaction Experience
*Note: Includes transactions completed by Meridian bankers while at previous firms
