FSV - FirstService Acquires Roofing Corp of America | Benzinga
TORONTO, Dec. 18, 2023 (GLOBE NEWSWIRE) -- FirstService Corporation (NASDAQ:FSV) ("FirstService") announced today that it has acquired Roofing Corp of America ("Roofing Corp" or "RCA"), one of the largest commercial roofing enterprises in North America. The addition is highly complementary to FirstService's existing portfolio of market-leading essential property services brands, adding to its capabilities in property repair, maintenance and restoration.
Headquartered 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 more than 900 highly trained professionals. Roofing Corp generates annual revenues of approximately US$400 million with operating margins that are modestly higher than the consolidated margin profile across FirstService.
Under the terms of the transaction, 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 going forward. 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 US$1.25 billion after the recent exercise and bank syndicate approval of the US$250 million accordion feature.
"We are delighted to be partnering with FirstService, which brings a like-minded culture and strategic vision," said Randy Korach, CEO of RCA. "FirstService's partnership philosophy combined with its strong balance ...