The Halifax Group has sold a majority interest in Southern Exteriors, an installer of exterior building systems, to Monomoy Capital Partners.
Southern Exteriors is a full-service installer of exterior building products including siding, roofing, gutters, and windows. The company primarily focuses on the residential market and services the largest national builders to regional, local and custom builders, as well as homeowners through its repair and remodel segment. Southern Exteriors’ service territories include Georgia, Tennessee, South Carolina, North Carolina, Florida and Alabama.
Southern Exteriors was founded in 2000 by CEO Aaron Kuhn and is headquartered 55 miles southeast of Atlanta in Jackson, Georgia.
Halifax acquired Southern Exteriors in May 2021 and will retain a minority equity position in the company in partnership with Monomoy. Mr. Kuhn and the existing management team of Southern Exteriors will continue to own equity in the business and will lead the company post-closing.
“We are appreciative of Halifax’s partnership, particularly the financial and operational resources they provided to support our growth,” said Mr. Kuhn. “As a strategic partner, they helped refine our new market expansion strategy, further develop our go-to-market plan, and position us for the next phase of growth with both existing and new customers.”
Monomoy’s investment in Southern Exteriors is based on the structural undersupply of housing nationwide and favorable migratory trends benefitting the Southeastern United States.
“Southern Exteriors presents an attractive opportunity to expand upon our track record in building products distribution and installation while supporting a fantastic business during its next phase of growth,” said Lee Mlotek, a managing director at Monomoy. “Aaron and his team have established Southern Exteriors as a differentiated player in the highly fragmented exterior building products installation landscape. We’re enthusiastic about partnering with this talented, growth-minded group that prioritizes excellence in all they do.”
“We enjoyed working with Aaron and the Southern Exteriors team to support the company in its evolution into a leading, scaled platform serving key markets in the Southeast,” said Doug Hill, a senior partner at Halifax. “Over our partnership, we developed a strategic plan to grow the business from its already outstanding foundation by expanding into new markets, developing tech-enabled solutions to better serve our existing customer base and bolstering the management team.”
“Our partnership with Southern Exteriors represents Halifax’s execution of an intentional thesis in the building products and services sector,” said Amit Swaroop, a principal at Halifax. “We observed structural deficits in residential housing in the United States, exacerbated in the Southeast, and sought to partner with a scaled provider primarily serving the single-family construction sector. We are proud of our partnership with Southern Exteriors and wish the entire team continued success in its next chapter.”
The Halifax Group invests from $40 million to $80 million of equity in companies with EBITDA from $8 million to $30 million and enterprise values from $50 million to $300 million. Sectors of interest include health and wellness, outsourced business services, and franchising. The firm was founded in 1999 and is headquartered in Washington DC with an additional office in Raleigh, North Carolina.
New York City-based Monomoy makes control investments of debt and equity in companies with $20 million to $100 million of EBITDA. Sectors of interest include manufacturing and distribution businesses across industrial and consumer product sectors in North America and Europe. In November 2021, Monomoy held the final close of its fourth private equity fund at an oversubscribed $1.1 billion of capital.
Alvarez & Marsal provided financial and accounting advisory services to Monomoy, and Lincoln International and Croft & Bender were the financial advisors to Halifax and Southern Exteriors on this transaction.
© 2024 Private Equity Professional | May 9, 2024
