Target Information

Kelly Roofing Holdings, LLC, a portfolio company of Midwest-based private equity firm Monument MicroCap Partners, LLC, successfully completed the acquisition of Integrity Roofing & Gutters Inc. on January 15, 2025. Integrity, headquartered in Orlando, Florida, is a reputable roofing contractor specializing in roof replacements, repairs, solar roofing solutions, and gutter services. The company caters to clients in Florida, Georgia, South Carolina, and North Carolina, focusing primarily on multifamily residential and commercial projects.

This strategic acquisition is expected to enhance Kelly Roofing's presence in the multifamily residential and commercial markets while expanding its geographic reach. The collaboration with Integrity allows Kelly Roofing to strengthen its operational capabilities in existing markets and access new customer segments.

Industry Overview in the Southeastern United States

The roofing industry in the Southeastern United States has experienced notable growth, driven by a rising demand for housing and infrastructure development. With a warm climate conducive to various roofing materials and styles, this region has seen an increase in residential and commercial construction projects. Moreover, the ongoing trend towards sustainable building practices and energy-efficient solutions has propelled the adoption of advanced roofing technologies, including solar roofing and green roofs.

Florida, as part of this region, presents a robust market for roofing contractors due to its vulnerabilities to severe weather, including hurricanes and tropical storms. As a result, property owners demand reliable roofing services that provide safety and durability. The market is characterized by a competitive landscape with both small and large players offering a range of roofing solutions.

In recent years, the roofing industry has also witnessed a shift towards innovation and technology integration, such as drone inspections and advanced energy solutions. Contractors are increasingly investing in new technologies to improve service delivery, enhance efficiency, and meet customer expectations. This trend reflects a broader emphasis on sustainability and value-added services within the industry.

As more homeowners and businesses focus on long-term investments in building maintenance and energy efficiency, the roofing market in the Southeastern United States is poised for continued growth. The integration of innovative roofing solutions aligns with consumer preferences and regulatory changes, further solidifying industry prospects.

Rationale Behind the Deal

The acquisition of Integrity Roofing & Gutters Inc. by Kelly Roofing is a strategic move aimed at strengthening market position and expanding service offerings. By entering the multifamily residential and commercial sectors, Kelly Roofing can diversify its portfolio and capitalize on the growing demand for roofing services in these segments. Additionally, this partnership allows Kelly Roofing to leverage Integrity's established reputation and client base in the Southeast, fostering a shared commitment to quality and customer service.

This collaboration aligns with Kelly Roofing's long-term growth strategy and supports Monument MicroCap Partners' objective of optimizing its portfolio companies through targeted acquisitions. The investment in Integrity not only enhances service capabilities but also reinforces Kelly Roofing's dedication to innovation within the roofing industry.

Information About the Investor

Monument MicroCap Partners, LLC is a Midwest-based private equity firm that specializes in investing in and managing small-cap companies across various industries. The firm focuses on growth-oriented investments and offers its portfolio companies strategic support to drive operational improvements and optimize financial performance. Since its inception, Monument has successfully backed numerous companies, facilitating their expansion through tailored capital solutions and industry expertise.

By investing in Kelly Roofing and supporting its growth initiatives, Monument underscores its commitment to fostering innovation and enhancing the competitive positioning of its portfolio companies. The firm's approach emphasizes collaboration with management teams to achieve sustainable success and create long-term value for stakeholders.

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In our expert opinion, the acquisition of Integrity Roofing & Gutters Inc. by Kelly Roofing represents a promising investment opportunity. The strategic alignment between the two companies, characterized by shared values and market insights, should facilitate seamless integration and operational synergies. Furthermore, Kelly Roofing's reputation for quality service and the innovative solutions it offers enhance the likelihood of success in entering new market segments.

The growth potential within the Southeastern roofing market, particularly with the increasing demand for multifamily residential and commercial services, positions this deal favorably for long-term profitability. Additionally, the emphasis on sustainability and technological advancements aligns well with emerging industry trends, providing Kelly Roofing with competitive advantages.

As this acquisition contributes to Kelly Roofing's expansion strategy, it is likely to bolster its market presence and service capabilities. Overall, this deal appears to be not only a good investment but also a strategic maneuver that could yield significant benefits for both companies and their stakeholders in the evolving roofing industry.

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