Altas Partners to acquire Tecta America from ONCAP

Canadian long-term private equity firm Altas Partners has agreed to buy U.S. commercial-roofing contractor Tecta America Corp, according to a news release.

Terms weren’t released for the deal, which is expected to close in the fourth quarter.

The seller is ONCAP, the mid-market arm of Canadian PE firm Onex Corp. ONCAP acquired Tecta two years ago for US$280 million from Oaktree Capital Management.

ONCAP invested US$124 million in the deal, according to the firm’s website.

Based in Rosemont, Illinois, Tecta was created in 2000 with the merger of 10 roofing companies. Today, it operates through 60-plus locations, providing installation, replacement, repairs and maintenance, new construction and other roofing services to a range of U.S. industries and end markets.

President and CEO Mark Santacrose, who has led Tecta since 2014, said Altas will help the company execute on organic and M&A growth opportunities.

Altas Partner David Brent, hired in July from Apollo Global Management, said Tecta is an “excellent fit” with the investor’s long-term strategy.

Altas was founded in 2012 by Managing Partner Andrew Sheiner, formerly a senior Onex executive, to make control-stake investments in hard-to-replicate businesses and hold them indefinitely.

Tecta is the firm’s third platform deal in 2018. In April, it agreed to buy University of St. Augustine for Health Sciences, a physical-therapy school, for US$400 million.

And earlier this month, Altas agreed to acquire a minority interest in insurance brokerage Hub International. The deal values Hub at more than US$10 billion.

Tecta is the fifth investment of Altas Partners Holdings LP, which raised US$1 billion in 2016.