Berkshire Partners Buys SRS Distribution

SRS Distribution, a Texas-based distributor of roofing supplies, has been sold to Berkshire Partners, the Boston private equity firm. Specifics on the deal were not publicized. SRS was previously a portfolio company of AEA Investors.

PRESS RELEASE:

Harris Williams & Co. Advises SRS Distribution in its Sale to Berkshire Partners

Richmond, VA, February 28, 2013 – Harris Williams & Co., a preeminent middle market investment bank focused on the advisory needs of clients worldwide, announces the sale of SRS Distribution Inc. (SRS), a leading national distributor of roofing supplies and related materials, to Berkshire Partners. SRS was a portfolio company of AEA Investors LP (AEA). Harris Williams & Co. acted as advisor to SRS. The transaction closed on February 28, 2013 and was led by Mike Hogan, Chris Williams, Ryan Nelson, and Brent Spiller from the firm’s Richmond office.

“SRS is a remarkable building products platform with an exceptional track record of growth and an outstanding management team. It has been a pleasure working with Ron Ross (CEO) and his team to find a new partner who shares the company’s vision for the future. We have a longstanding relationship with the AEA team and are delighted to have represented them on this transaction” said Mike Hogan, a managing director at Harris Williams & Co.

In 2012, Harris Williams & Co. also served as the exclusive advisor to Roofing Supply Group (RSG), another leading distributor of roofing supplies and related materials. “The SRS transaction is a further example of the strong investor interest in building products and materials companies. We expect the ongoing recovery in new construction will continue to drive M&A activity in the sector,” added Ryan Nelson, a director at Harris Williams & Co.

Headquartered in McKinney, TX, SRS is the fourth largest residential roofing distributor in the U.S. with 85 locations in 29 states under 19 different brands: Suncoast Roofers Supply (FL), Southern Shingles (TX/OK/LA/MO/AR), SRS Roofing Supply (AL), Rowe Supply (GA/SC), Atlanta Roofing Supply (GA), Cannon Supply (SC), Columbia Wholesale (SC), Midwest Roofing Supply (IL/MN), Gary-Hobart Roofing Supply (IN), River City Wholesale (KY), Superior Distribution (TN/MD/VA/NC), Shake & Shingle Supply (CO/KS/MO/NE/IL), Stewart Building & Roofing Supply (AZ), Roofline Supply (OR/CA/UT), Stoneway Roofing Supply (WA), Pace Supply (PA/CT), Burbank Roofing Supply Group (CA), ABCO Supply (MI) and Sierra Roofing Supply (NV).

AEA was founded in 1968 by the Rockefeller, Mellon, and Harriman family interests and S.G. Warburg & Co. as a private investment vehicle for a select group of industrial family offices with substantial assets. AEA’s active individual investors include an extraordinary network of more than 75 highly successful business executives, industrial families and former government leaders. Today, AEA’s over 60 investment professionals operate globally with offices in New York, Connecticut, London, Munich, Hong Kong and Shanghai. The firm manages funds that have over $6 billion of invested and committed capital including the leveraged buyouts of middle market companies and small businesses and mezzanine and senior debt investing. AEA Private Equity invests across four sectors: value added industrial products, specialty chemicals, consumer products / retail and services.

Berkshire Partners, the Boston-based investment firm, has invested in over 100 middle market companies since 1986 through eight private equity funds with aggregate capital commitments of $11 billion. Berkshire has developed specific industry experience in several areas including consumer products and retail, business services, industrial manufacturing, transportation and communications. Berkshire has a strong history of partnering with management teams to grow the companies in which it invests with the goal of consistently achieving superior investment returns. The firm is currently investing from Berkshire Fund VIII, a $4.5 billion fund raised in 2011. Berkshire seeks to invest $50 million to $500 million of equity capital in each portfolio company.

Harris Williams & Co. (www.harriswilliams.com), a member of The PNC Financial Services Group, Inc. (NYSE:PNC), is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, board advisory, private placements and capital markets advisory services.

The firm has the leading middle market building products and materials practice, having closed over 75 sell-side M&A transactions, with a focus on a broad spectrum of related sectors with expertise that spans from lighter building products used in residential and commercial markets to heavy construction materials used in infrastructure applications. For more information on our building products and materials experience, contact Mike Hogan at +1 (804) 648-0072.

The firm also has the leading middle market specialty distribution practice, having closed over 60 sell-side M&A transactions across a spectrum of industries. For more information on our specialty distribution experience, contact Bob Baltimore at +1 (804) 648-0072.

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Services Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.