AEA

logo-case-study-srs


AEA invested in SRS Distribution Inc. (dba SRS Roofing Supply), a family of industry-leading, independent roofing distributors, in 2008. The company is now one of the five largest roofing distributors in the nation with a complete line of roofing products for residential and commercial applications.

AEA DIFFERENTIATOR: PARTNERSHIP WITH MANAGEMENT
  • AEA partnered with an executive who previously who led two successful consolidations and had strong industry relationships with both suppliers and acquisition candidates.
  • Together, AEA and management set an investment thesis to consolidate the roofing distribution industry.
AEA VALUE CREATION
  • Recruited proven management team to lead a consolidation in the roofing distribution industry.
  • Acquired original platform out of bankruptcy and since supported the acquisitions of numerous other businesses which established the company as a national player and one of the ten largest roofing distributors in the country.
  • Led revitalizations of original business, including management upgrades, working capital investment and the closing of underperforming locations.
  • Arranged an asset based loan and subsequently expanded it to $60 million in order to provide funding for acquisitions.
  • Opened greenfields and made acquisitions in key locations that capitalize on storm markets.
RESULTS
  • AEA sold SRS to a financial sponsor in 2012.
  • Under AEA’s ownership, despite a relatively flat roofing market, SRS was able to grow its business and create value by acquiring businesses, opening greenfield sites, and taking share. The company completed 27 acquisitions, opened 36 greenfield locations opened and grew to 5th largest roofing distributor in the US.

  • $15b

    With over $15 billion under management, AEA is a leader in global, middle-market private investing.

  • 130+

    With approximately 135 employees, including approximately 90 investment professionals, AEA’s experienced and focused team leverages deep industry knowledge and exceptional operational expertise.

  • 5/3

    With five offices across three continents, AEA has an unparalleled global network of relationships with family owners of industrial companies, business executives and influential government leaders.

  • 1968

    Founded in 1968 by members of the world’s leading industrial families, AEA is one of the oldest and most experienced private equity firms with a long legacy of success.

  • 75

    AEA has more than 75 Participants, who include some of the world’s pre-eminent industrial families, business executives and former government leaders.