St. Pete roofing company grows footprint after sale

Merger and acquisition transactions have slowed, but not stopped, amid the Covid-19 pandemic.

United Roofing & Construction Services Inc., a roofing company in St. Petersburg, sold April 1 to Dynamic Roofing LLC in Denver, said Hank Riner, an M&A advisor with Aberdeen Advisors. The St. Petersburg-based M&A advisory firm represented United Roofing in the deal.

Financial terms were not disclosed. Seth Bedell, who previously owned 100 percent of United, remains with the company as president of the Florida market for Dynamic and as a shareholder. The 100 or so people who work for United, including full-time employees as well as subcontractors, will stay on as well.

Hank Riner

The deal went through despite challenges presented by the efforts to control Covid-19. The transaction required transferring a license, but the state office in Tallahassee that handles that was closed. “We got in touch with a couple of key employees of the state who were very helpful in getting  through that process,” Riner said.

Documents were signed electronically as well.

“A lot of M&A transactions are difficult and they don’t always end up where you want them to be. This was a case where we were working with a great seller and a great buyer, and this was a great strategic fit for both parties,” Riner said.

United Roofing, which primarily does commercial projects, was profitable and growing, but Bedell — who owned the company for more than 10 years — was looking to take the business to the next level of growth when he approached Aberdeen last summer. He was looking for either a financial or a strategic partner to help him do that.

Aberdeen talked to large roofing companies with national platforms, private equity funds that invest in speciality contractors, and family offices. There was a lot of interest, Riner said.

“There were five interested parties interested in buying United, and this was the one Seth choose – not just for valuation, but also for a long-time partner,” Riner said.

Dynamic is owned by Mantucket Capital, a family office in Denver that invests in growing, successful companies. Mantucket, with more than $1 billion in capital under management, says it is a group of socially responsible entrepreneurs and investors with global contacts, a long track record of building successful businesses and a mission to partner with management teams.

“They were very interested in the Florida market for expansion. They were in Colorado, south Wyoming and Texas, did not have a presence in the Florida market. This was a strategic opportunity for them and we were able to get together and get a deal completed,” Riner said. “Also, Dynamic in Denver has access to insurance carrier relationships, which will be another great system for Seth  to generate new leads. Even while they were doing the deal Dynamic passed on new leads to United to expand their business. They’re looking to expand business development, they’re looking to expand the sales force. They believe in the Florida market and the tremendous growth potential in this market.”