Saw Mill Capital has formed SMC Roofing Solutions as a platform to begin a consolidation of residential roofing repair companies.
Saw Mill’s strategy with SMC is to create a multi-regional, residential re-roofing platform focused predominately on insurance-claim demand. The company will emphasize a direct-to-consumer selling model to provide homeowners with roofing replacement and maintenance services.
SMC has closed on its first acquisition for SMC and is in the process of acquiring additional brands in adjacent markets. Saw Mill has not released any details on this transaction. SMC is the first platform investment for Saw Mill Capital Partners III LP. This new fund has not yet held a final close and has a $400 million target and a $450 million hard cap.
“We see a need for a scaled service provider that combines strong institutional knowledge of the insurance adjustment process and technical roofing expertise with exceptional customer service,” said Scott Rivard, a partner at Saw Mill. “SMC Roofing will be able to provide its businesses and entrepreneurs with the resources and support needed to accelerate growth, including deep relationships with outside suppliers, sales and installation crews. We are excited to partner with the SMC Roofing Solutions management team to execute against a number of strategic initiatives, which will include both organic and acquisitive growth opportunities.”
“Saw Mill was able to leverage its industry research team to get a deep understanding of the large and highly fragmented insurance-focused residential re-roofing market opportunity in the United States,” said Dan Gregg, a vice president at Saw Mill. “We see several advantages to further consolidation and will be looking to expand the platform through partnerships with additional market-leading businesses.”
Saw Mill invests in North American-based manufacturing, industrial and commercial services, and specialty distribution businesses with $25 million to $200 million of revenues and $5 million to $25 million of EBITDA. The firm was founded in 1997 and is headquartered north of New York City in Briarcliff Manor, New York.
© 2023 Private Equity Professional | June 28, 2023
