SRS Acqusition Corp. (SRS) announced today its second acquisition in five days and fifth deal this year: Stewart Building & Roofing Supply, a one-store operation based in Tucson, Ariz.
Unlike other recent deals that involved companies which focus on roofing, Stewart distributes hardwood as well as roofing, and thus appeals to cabeinet makers as well as residential and commercial roofing contractors. All 16 employees will remain with the cmopany, which will continue to operate under its current name, but majority owner Jim Stewart won't become part of the new operation. Rather, company president Marc Stewart will become an SRS branch manager for Tucson, reporting to Lonnie Peterson, SRS' regional vice president for the West.
Today's news follows SRS's acquisition of Superior Distribution of Piney Flats, Tenn., a one-store distributor of roofing and related exterior products serving the Tri-Cities market of Tennessee and Virginia. Just as the Superior deal marked SRS' first foray into Tennessee, the acquisition of Stewart brings SRS, America's 14th-biggest LBM operation, to Arizona for the first time..
"We believe it is strategically important that we gain a toehold in Arizona to enhance our geographic footprint in the Sunbelt from Florida to California," Ron Ross, chief executive officer of SRS, said in a statement. "As the housing market recovers, Stewart will enjoy a greater recovery than most markets and it will be a significant growth engine for our Western region. We have been looking to enter Arizona for some time and are thrilled to have the opportunity to have this first class company with outstanding people join our fast-growing family."
SRS now operates 42 locations in 15 states under 12 different names. McKinney, Texas-based SRS ranked 15th on the latest ProSales 100 list of America's biggest LBM operations, with 2009 sales of $240 million--double its 2008 sales. Since then, former No. 2 ABC Supply's takeover of former No. 4 Bradco Supply has caused SRS to move into 14th place.