SRS Acquisition Corporation Announces plans to expand in Arizona and exit the South Florida market.
McKinney, TX, October 18, 2010: SRS Acquisition Corporation (“SRS” or “the Company”) announced today that it will open a new Stewart Roofing Supply location in Phoenix, Arizona on November 1st. Additionally, SRS has decided to exit two markets in South Florida by closing the Ft. Myers, Florida location, consolidating it into the nearby Sarasota location, and plans to close the Deerfield Beach, Florida location by the end of November. These two South Florida markets represented only 2% of SRS’ annual revenue, yet employed significant working capital that will be moved to stronger markets, like Phoenix, to fuel faster pace growth.
SRS will be led in Phoenix by Rob Richardson, who has recently joined the Stewart team, and plans to cater to both the residential new construction and re-roof segments as well as the commercial roofing segment. This location will complement the newly acquired Stewart location in Tucson and provide for the right footprint with the right cost structure in Arizona while also doing the same for SRS in Florida.
SRS also reiterated that it has no plans to close any other locations in Florida or anywhere else in the nation and will continue to look for new strategic acquisitions and attractive teams of people interested in opening new locations around the country. SRS also restated its goal to end 2010 with close to 50 locations and attempt to reach over 80 locations by the end of next year, maintaining its position as the roofing industry’s fastest growing group of independent distributors.
Ron Ross, Chief Executive Officer of SRS Acquisition, commented, "This strategic move allows us to reposition a significant amount of assets into Arizona and get out from under a cost structure in South Florida that was not conducive for achieving our desired results in the foreseeable future. I also want to thank the many hard working employees of the effected branches – it was not due to lack of ability or effort on their part that led to this tough economical decision. In fact, when this area of the country recovers in the years ahead, we do plan to reenter these markets with the right cost structure and service offering that our customers have come to expect from us. We remain committed to build the nation’s leading family of independent roofing distribution businesses and also to help the industry consolidate in a manner that is responsible.”
Headquartered in McKinney, TX, SRS Acquisition is a building products distribution holding company that with the closing of these two locations will operate 41 locations in 15 states under the names: Suncoast Roofers Supply (FL), Southern Shingles (TX/OK), Rowe Supply (GA/SC), Atlanta Roofing Supply (GA), Wilson Wholesale (IL/MN), River City Wholesale (KY), Superior Distribution (TN), Shake & Shingle Supply (CO), Stewart Building & Roofing Supply (AZ), Roofline Supply (OR/CA), Stoneway Roofing Supply (WA) and Pace Supply (PA). SRS is a portfolio company of AEA Investors, LLC.