With 45 acquisitions in its eight-year history and plans to continue that growth strategy, McKinney, TX-based SRS Distribution Inc. is quickly making its mark on the roofing distribution industry.
Acquisitions played a key role in the early years of the company, President and COO Dan Tinker says in MDM Interview: Sky’s the Limit at SRS Distribution. The strategic M&A deals that complemented its other growth drivers drove SRS Distribution to $1 billion in revenue within six years.
"We knew the market was down and it was a good time to pursue acquisitions because we had cash on the balance sheet," Tinker says. "We took advantage of a few unique buying opportunities that helped set the stage for our national platform."
Last year SRS grew revenue 32 percent and in the past three years it has seen sales, EBITDA and locations double. Boston-based Berkshire Partners LLC invested in the company in 2013, with members of the SRS management team retaining an investment stake, and this year SRS Distribution made its debut in the MDM's list of the Top Building Materials & Construction Distributors.
While the company is also focused on greenfields and organic growth, acquisition remains a priority for SRS Distribution. It continues to "keep an active dialog with many strategic and opportunistic targets" and has a full pipeline of potential assets, Tinker says.
"We consider ourselves somebody that buys family businesses and helps build them to their full maximum potential by bringing them resources, capital and a growth mindset to really unleash their full potential while preserving their legacy," Tinker says. "I think that is our calling card and what makes us standout versus other acquirers."
Read more about SRS Distribution's strategy in MDM Interview: Sky’s the Limit at SRS Distribution.