Contact:Douglas F. Berman
Telephone: (305) 379-2322
H.I.G. Forms Integrated Roofing and Waterproofing, Inc.
AND ANNOUNCES THE PURCHASE OF FIVE COMPANIES
MIAMI - May 19, 1999- Integrated Roofing & Waterproofing, Inc. (IRW) today announced the completion of the purchase of five commercial roofing contractors, effective April 30, 1999.
Robert S. Zlotnik, IRW Chief Executive Officer and a Director, stated, "IRW is the third largest roofing contractor in the country and will focus on providing high quality roofing, waterproofing, and maintenance services to a rapidly growing national account base. We now have the foundation, using a decentralized "best practices" approach, to develop a quality nationwide roofing company."
Charles D. Gessler, IRW Chief Financial Officer, added, "Our unique group of partner companies have averaged a 13 percent compounded annual growth rate over the last 5 years and have an average EBITDA margin in excess of 15 percent. We have no weak links in this chain and will continue to acquire the same type of contractors in both roofing and waterproofing."
The cash portion of the acquisitions were funded primarily through a bank credit facility with Bank of America, Bank One, and SunTrust Banks. H.I.G. Capital, a Miami-based private investment firm with over $500 million of capital, provided the majority of the cash equity in this transaction.
The five companies comprising IRW include: Beta Construction Company and Hampton Supply, Inc. of Capital Heights, Maryland; City Roofing Company, Inc. of Memphis, Tennessee; Atlas Roofing Company, Inc. of Atlanta, Georgia; Boone Brothers Roofing, Inc. of Omaha, Nebraska and Kansas City, Kansas; and M. J. Dalsin Company, Inc. of Sioux Falls, South Dakota and Fargo, North Dakota.