CLEVELAND, April 27, 2018 – Leonard Green and Partners, a leading private equity firm, announced today that it had entered into an agreement to purchase SRS Distribution – the third largest roofing products distributor in the US – from Berkshire Hathaway for $3 billion.
According to Freedonia Group industry analyst Matt Zielenski, “By purchasing one of the leading distributors of roofing products, Leonard Green and Partners will immediately play a key role in the US roofing industry.” Furthermore, notes Zielenski, this is a particularly auspicious time to enter the roofing distribution segment of the industry, as reroofing activity is expected to grow at an elevated level in 2018. As more home and business owners feel increasingly confident about the economy, they will undertake previously delayed improvement and repair projects, including the replacement of older roofs that are at or near the end of the product lifespan.
More information in the Roofing Distribution Market in the US by Sales Channel, Market, & Product study can be accessed here: https://www.freedoniagroup.com/industry-study/roofing-distribution-market-in-the-us-by-sales-channel-market-and-product-3497.htm
“Also, among the provisions of the Tax Cuts and Jobs Act is a rule that allows many small business owners to write off – in some cases completely – a reroofing project in one year, rather than over a much longer depreciation cycle. Many commercial contractors are expecting a significant increase in reroofing jobs over the next few years as business owners take advantage of this new rule.” This surge in commercial reroofing activity will boost sales at SRS Distribution, stated Zielenski, given the large number of commercial roofing contractors in that company's customer network.
For more information on the outlook for the US building construction industry, see the Construction Studies page featuring the following industry studies by The Freedonia Group:
Liquid-Applied Roof Coatings in the US by Product & Subregion
Roofing: US Forecasts by Product, Market, & Subregion
Metal Roofing in the US by Product, Market, & Subregion
Low-Slope Roofing in the US by Product, Market, & Subregion
Asphalt Shingles in the US by Product, Market, & Subregion
Roofing Underlay Market in the US by Product, Market, & Region
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SOURCE The Freedonia Group