Six Pillars Partners has acquired Royalty Roofing and its sister company, Majestic Facility Experts.
Royalty Roofing provides commercial and residential re-roofing, maintenance, inspection and repair services to national, multi-unit after-market auto retailers, quick-service restaurants and franchisees, cold storage warehouse owners and operators, and food distributors.
Royalty’s commercial activities comprise approximately 90% of its revenues with its residential activities at 10%. In 2021, Royalty Roofing, with approximately $44 million in revenue, was ranked as the 43rd largest roofing contractor by Roofing Contractor Magazine.
Since its founding in 1986 by President Andy Royalty, the company has installed over 55 million square feet of roofs for over 20,000 customers.
Royalty has just under 200 employees and is headquartered 60 miles south of Indianapolis in Seymour, Indiana, with additional facilities in Warsaw, Indiana; Ft. Myers, Florida; and Orlando, Florida.
Operating as a natural extension of Royalty, South Bend, Indiana-based Majestic Facility Experts provides management services for a network of technicians and trade experts throughout the United States to fulfill the repair and facility maintenance needs – electrical, plumbing, general repair, lighting, janitorial, HVAC/R maintenance, and pest control – of its national, regional, and local commercial clients.
“Our entire management team is excited about the enhanced growth opportunities this new partnership will bring,” said Mr. Royalty. “Six Pillars is a great fit not only for the strategic expertise they bring to the table, but more importantly, for the value they place on caring for our people.”
“We’re thankful to be able to partner with successful entrepreneurs, founders and operators like Andy who have built businesses on the foundation of passionately serving their employees, customers, and community,” said Teddy Saltzstein, a partner at Six Pillars. “Andy’s dedication to thoughtful growth and the “Royalty way” is evidenced by the company’s 37-year operating history, its national reach, and numerous awards for being a leading re-roofing and facility maintenance provider.”
The acquisition of Royalty Roofing and Majestic closed in September and the company has already closed its first add-on acquisition (the add-on’s name has not yet been announced). Six Pillars will continue to pursue additional add-on opportunities to build scale and establish offices in other markets throughout the United States.
Six Pillars makes control investments in asset-light service companies that have from $4 million to $25 million of EBITDA. The firm was founded in 2013 by Partner Brandt Hamby and Advisor Carl Hefton and is headquartered in Dallas.
Capital to support this transaction was provided by Centerfield Capital Partners, Petra Capital Partners, Concentric Investment Partners, and UMB Capital Corporation.
© 2023 Private Equity Professional | October 27, 2023
