SRS Acquisition Corporation Obtains Additional Financing to Fund Long-term Expansion
SRS Acquisition Corporation (“SRS” or “the Company”) announced today that it has obtained $30 million in additional financing through a transaction in which Oaktree Capital Management, L.P.’s Mezzanine Fund and AEA Mezzanine Fund II have both invested in subordinated debt and equity of the Company. Proceeds of the financing were used to pay down the Company’s existing revolving credit facility. The additional availability under the revolving credit facility will be used to fund future growth through acquisitions and new branch openings as well as ongoing operating needs. Additionally, the subordinated debt facility includes an undrawn $20 million in additional commitments, which can be used to fund future acquisitions.
Ron Ross, Chief Executive Officer of SRS Acquisition Corporation, commented, "This new capital structure allows us to continue our pace of adding 15-25 locations per year to our national network for the next few years. We believe this additional financing, coupled with continued strong performance from our hard working team, will allow us to achieve our stated goal of reaching $1 billion in sales with over 100 locations in the next 3 years. Furthermore, with the continued support of our long-term investors and banking partners, we are well positioned to build an even stronger platform to facilitate strong long term growth over the next 5-10 years.”
Headquartered in McKinney, TX, SRS Acquisition is a building products distribution holding company that operates 45 locations in 17 states under the names: Suncoast Roofers Supply (FL), Southern Shingles (TX/OK/LA), Rowe Supply (GA/SC), Atlanta Roofing Supply (GA), Wilson Wholesale (IL/MN), River City Wholesale (KY), Superior Distribution (TN/MD), 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 LP.