Content area
Full Text
Merger of roofing giants changes the playing field
The acquisition of Bradco Supply by ABC Supply is easily the largest merger in the roofing distributor industry ever, creating a company that will dwarf its competitors with 479 locations in 45 states and the District of Columbia. Given the size of the deal, the acquisition is subject to the Hart-Scott-Rodino Act and other regulatory approvals. Both companies expect to close the purchase, whose price has not been disclosed, by the end of June.
Founded by Barry Segal in 1965, Bradco has gone through many permutations through the years. At one point it was on the verge of being acquired by Cameron Ashley, but the deal fell through over management issues. Several years later, Segal attempted to purchase all 59 units of the struggling Wickes Lumber chain. He ended up with 20. And these were eventually closed, sold or converted over to locations that sold roofing and exterior building products as well as several cabinet and millwork showrooms.
In February 2008, Segal retired, appointing Ted Boylan as CEO and his two sons, Brad and Martin, as president and company VP, respectively. Six months later, in August, the Segal family sold a majority stake (85%) in the company to Advent International, a private-equity firm that specializes in mid-market buyouts and strategic repositions. The two companies said they planned to grow the business through acquisitions and regional expansions.
And that's exactly what they did. In...