FirstService Expands Commercial Roofing Platform
FirstService has announced the acquisition of Crowther Roofing and Hamilton Roofing through its subsidiary Roofing Corp of America (RCA). These acquisitions provide RCA with a strong foothold in Florida, contributing over $150 million in annual revenues. Crowther Roofing, based in Fort Myers, Florida, focuses on commercial roofing and employs 750 technicians. Hamilton Roofing, situated in Malabar, Florida, serves the commercial sector and has strong ties with blue-chip clients in government, aerospace, and education. Both companies' management teams will retain minority equity and continue daily operations.
- Acquisition of Crowther and Hamilton adds $150 million in annual revenues.
- Crowther and Hamilton offer strong presence in Florida, a key market.
- Crowther employs 750 skilled technicians, enhancing RCA's workforce.
- Hamilton has established relationships with blue-chip clients in high-value sectors such as government, aerospace, and education.
- Both companies' management teams retain minority equity, ensuring continuity in operations.
- Terms of the acquisitions were not disclosed, causing potential uncertainty for investors.
- Integration risks associated with acquiring and managing new entities.
- Potential over-reliance on the Florida market could expose RCA to regional economic fluctuations.
Insights
The acquisition of Crowther Roofing and Hamilton Roofing by FirstService's subsidiary, Roofing Corp of America (RCA), is a significant move. This strategic expansion into the Florida market is particularly noteworthy given the state's size and economic activity. The integration of Crowther and Hamilton is expected to add over
However, a critical point to consider is how well RCA can manage and integrate these new acquisitions. Maintaining operational efficiency and ensuring smooth integration are key to realizing the potential benefits. Investors should monitor future earnings reports for signs of effective cost management and operational synergies.
In the short term, the stock may see positive movement due to the optimistic outlook. Long-term gains will depend on RCA's ability to leverage its new market position and retain key customer relationships.
From a market perspective, RCA's entry into the Florida roofing market is a strategic win. Florida is one of the largest roofing markets in North America, driven by a mix of commercial and residential demand. The commercial segment, where both Crowther and Hamilton operate, is particularly lucrative given the ongoing need for maintenance and renovation.
Crowther's complementary HVAC services add another layer of revenue potential, allowing RCA to offer a broader range of services to its clients. This diversification can help mitigate risks associated with market fluctuations in the roofing industry alone.
Investors should appreciate the strategic positioning and the enhanced service offering, which could lead to sustained revenue growth and market share gain in the long run. The retention of Crowther and Hamilton's management is also a positive factor, ensuring continuity and stability during the transition period.
Understanding the roofing industry dynamics, this acquisition places RCA in a favorable position within a highly competitive market. Florida's roofing market, noted for its size and demand consistency, offers significant opportunities. Crowther's leadership in Southwest Florida and Hamilton's connections along the Space Coast, such as with government and aerospace sectors, provide RCA with established entry points.
Retention of the existing management teams is important as it ensures continuity and leveraging of local expertise and relationships. Integrating these teams effectively will be vital for maintaining customer trust and operational efficiency.
The complementary HVAC services offered by Crowther are particularly relevant, as they align with growing trends in bundled service offerings, which can lead to increased customer loyalty and cross-selling opportunities.
Roofing Corp of America Acquires Florida-Based Crowther Roofing and Hamilton Roofing
TORONTO, June 06, 2024 (GLOBE NEWSWIRE) -- FirstService Corporation (TSX and NASDAQ: FSV) (“FirstService”) announced today that its subsidiary, Roofing Corp of America (“RCA”), has acquired Crowther Roofing and Cooling (“Crowther”) and Hamilton Roofing (“Hamilton”). The additions of Crowther and Hamilton provide RCA with a strong new presence in the important Florida market and will collectively add more than
Headquartered in Fort Myers, Florida and founded in 1974, Crowther is the leading roofing services provider in Southwest Florida, with a particular focus on the commercial end market. Crowther also provides complementary HVAC maintenance and mechanical contracting services. Crowther operates from three regional branch locations and employs approximately 750 roofing installation and service technicians.
Established in 1983 with its head office in Malabar, Florida, Hamilton is the leading provider of commercial roofing services across Eastern Florida’s Space Coast. Hamilton has developed long-established relationships with major blue-chip commercial clients spanning the government, aerospace and education sectors.
“Florida is one of the largest roofing markets in North America and a strategic growth priority for us. These two transactions provide RCA with an immediate significant presence in this key geographic region,” said Randy Korach, CEO of RCA. “We are excited to add Crowther and Hamilton to RCA’s growing family of roofing services brands and welcome their leaders and teams to our organization.”
ABOUT FIRSTSERVICE CORPORATION
FirstService Corporation is a North American leader in the essential outsourced property services sector, serving its customers through two industry-leading service platforms: FirstService Residential, North America’s largest manager of residential communities; and FirstService Brands, one of North America’s largest providers of essential property services delivered through individually branded company-owned operations and franchise systems.
FirstService generates more than US
For the latest news from FirstService Corporation, visit www.firstservice.com.
FORWARD-LOOKING STATEMENTS
This press release contains statements that constitute “forward-looking statements” within the meaning of applicable securities legislation, including, but not limited to, the expected closing of the proposed transaction, the impact of the proposed transaction on FirstService’s business and future financial and operating results and the scope of the expected financing for the proposed transaction. Much of this information can be identified by words such as “expect to,” “expected,” “will,” “estimated” or similar expressions suggesting future outcomes or events. FirstService believes the expectations reflected in such forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon.
Forward-looking statements are based on current information and expectations that involve a number of risks and uncertainties, which could cause actual results or events to differ materially from those anticipated. These risks include, but are not limited to, risks that: FirstService is unable to promptly and effectively integrate RCA’s businesses; management’s time and attention is diverted on transaction-related issues; FirstService or RCA is unable to retain key personnel; and other risks related to FirstService’s business, including those identified in FirstService’s annual information form for the year ended December 31, 2023 under the heading “Risk factors” (a copy of which may be obtained at www.sedarplus.ca) and Annual Report on Form 40-F filed with the United States Securities and Exchange Commission (a copy of which may be obtained at www.sec.gov), and subsequent filings. Forward-looking statements contained in this press release are made as of the date hereof and are subject to change. All forward-looking statements in this press release are qualified by these cautionary statements. Unless otherwise required by applicable securities laws, we do not intend, nor do we undertake any obligation, to update or revise any forward-looking statements contained in this press release to reflect subsequent information, events, results or circumstances or otherwise.
COMPANY CONTACTS:
D. Scott Patterson
CEO
FirstService Corporation
(416) 960-9566
Jeremy Rakusin
CFO
FirstService Corporation
(416) 960-9566
FAQ
What recent acquisitions has Roofing Corp of America made?
How much revenue will the new acquisitions bring to Roofing Corp of America?
Which markets are Crowther Roofing and Hamilton Roofing strong in?
What is the strategic importance of the acquisitions for Roofing Corp of America?
Will the existing management teams of Crowther and Hamilton stay after the acquisition?
