ACQUISITIONS

RSG has maintained a consistent track record of new branch growth over its more than 25-year history. Acquisitions have become an increasingly important part of the company’s strategy for future growth. Currently, RSG is financially strong and is actively looking for the right opportunities to acquire market-leading distributors across the United States.

The distribution industry for roofing and building materials has seen dramatic change in recent years and will continue to evolve, which can present challenges for independently owned and operated businesses. Joining the RSG team can offer an owner and his/her company a number of benefits to address these challenges:

• Consolidation and competition will become more intense, as signaled by the ABC-Bradco merger. RSG can bring added security for you and your people, as well as provide leverage to maximize supplier relationships and enhance the bottom line.
• RSG’s approach to making an acquisition starts with a blank piece of paper, recognizing that each owner has a unique situation and set of concerns. RSG is highly flexible with respect to financial structure, integration of the business, and post-transaction role of the seller.
• RSG brings the advantages of a large national player, while still feeling like a small company. RSG takes pride in an enduring culture where much of the decision-making is entrusted to the branch leadership.
• RSG offers the opportunity for retaining a minority interest in the business to an owner that wants to continue in an active role post-transaction, providing future upside under RSG. Corporate stock options may also be part of the transaction, if desired by an owner.

In evaluating potential acquisition opportunities, RSG considers the following as ideal criteria for a target company:

ü  Market leader that ranks among the top distributors in each of its markets

ü  Owner (or successor) plans to continue in a full- or part-time capacity post-transaction

ü  Strong and committed management team and employees

ü  Located in a market with a large or growing population

ü  Geographic location consistent with RSG’s current foot print

ü  Primary focus in roofing materials, but may offer other complementary building products (siding, windows, doors, etc.)

ü  Healthy mix of residential and commercial customers

For a confidential discussion to learn more about RSG, the acquisition process, and a company evaluation, please contact Paul Drobnitch, Vice President of Corporate Development at 214.956.5184 or pdrobnitch@rsgroof.com.