Soundcore Soars Over the Roof with Sale of RCA

Soundcore Soars Over the Roof with Sale of RCA

Soundcore invested in Roofing Corporation of America in 2020 and over the three-year term increased its revenue and EBITDA by 10x

Roofing Corporation of America (RCA) is an Atlanta-headquartered provider of commercial, industrial, and residential roof replacements and repairs, new roof installation, and ongoing preventative maintenance services.

SOURCE: Getty Images

Soundcore Capital Partners has sold Roofing Corporation of America to publicly traded FirstService Corporation for $413 million.

Roofing Corporation of America (RCA) is an Atlanta-headquartered provider of commercial, industrial, and residential roof replacements and repairs, new roof installation, and ongoing preventative maintenance services. RCA operates from 16 regional branch locations across 11 US states, spanning the Sun Belt, MidAtlantic, Midwest and West regions. The company has annual revenues of approximately $400 million and 900 employees.

Soundcore formed RCA in December 2020 as a platform to acquire roofing contractors throughout the United States, serving the repair, replacement, and new construction segments of the commercial market.

Over the next three years RCA closed ten acquisitions including Nevada-based The Original Roofing Company (December 2020), Georgia-based Innovative Roofing Group (July 2021), Georgia-based The Bone Dry Roofing Company (July 2021), North Carolina-based Davco Roofing & Sheet Metal (March 2022), California-based AAA Roofing (June 2022), Ohio-based Deer Park Roofing (August 2022), Georgia-based Pittman Waller Roofing Company (November 2022), Texas-based WeatherShield Roofing & Sheet Metal (December 2022), Colorado-based Front Range Roofing Systems (May 2023) and Louisiana-based Roof Technologies (November 2023).

“It was a pleasure to partner with Soundcore over the past three years,” said Randy Korach, the CEO of RCA. “Today’s announcement is the culmination of a lot of hard work. Soundcore has been a trusted and valuable strategic partner for our management team. The partnership with Soundcore enabled us to build a strong company, one of the leading roofing contractors in the United States. Soundcore executed its proactive approach and provided the necessary resources to allow us to achieve our goals and deliver the care and attention that demanding clients have come to expect. We are grateful for their support and partnership.”

“We initially invested in this thesis with the goal of creating a leading service provider in the roofing industry. Through a combination of strategic add-on acquisitions, investments in technology and integration, procurement programs, organic growth initiatives, and the addition of several key management team members, we were able to achieve our goals. Under Soundcore’s ownership, RCA’s revenue and EBITDA increased by more than tenfold,” said Jarrett Turner, the founder and managing partner of Soundcore.

New York City-headquartered Soundcore specializes in North America-based buy-and-build investments in the lower middle market. Target companies typically have revenues up to $150 million and are active in business and outsourced services, industrial services, specialty manufacturing, and value-added distribution sectors. Soundcore was founded in 2015 and has completed 88 acquisitions across eleven platforms.

“We are proud of our partnership with the RCA management team, which successfully executed Soundcore’s platform creation strategy. We want to credit Randy Korach and the entire RCA team for their impressive accomplishments, leadership, and dedication in helping us build a leading company. We are pleased with the outcome for our investors, and we wish this team and the company success during this next phase of growth,” added Mr. Turner.

FirstService Corporation (NASDAQ: FSV) provides residential property management and property services to residential and commercial customers in the United States and Canada. The company’s FirstService Brands segment provides property services to residential and commercial customers through both five franchise networks and company-owned operations. The company’s services include restoration, painting, and floor coverings design and installation services, custom-designed and installed closets, home inspection services; and fire protection. Through September 2023, the company’s TTM revenue was $4.3 billion. FirstService was founded in 1989 and is headquartered in Toronto.

“RCA offers a unique opportunity to add a leading commercial roofing services enterprise with significant scale, strong leadership and a broad geographic footprint,” said Scott Patterson, the CEO of FirstService. “RCA shares many of the same attractive characteristics as our other businesses in terms of being an essential property service operating in a large, highly fragmented industry with significant growth potential.”

Piper Sandler was the financial advisor to Soundcore and RCA on this transaction.

© 2023 Private Equity Professional | December 19, 2023

To search in site, type your keyword and hit enter