A news brief appearing in Bloomberg News last Friday was conspicuous for its brevity: the private equity owners of Tecta America, America’s largest commercial roofing firm — and perennial No. 1 on RC’s Top 100 Roofing Contractors list — may be going on the sales block. 

While Bloomberg stated that Tecta’s owners are “considering strategic options, including a sale,” which the business news outlet attributed to people “familiar with the matter,” following the story of roofing stalwart Beacon receiving an unsolicited advance for purchase makes the Tecta news even more unexpected.

Tecta America has more than 70 offices nationwide. Its private equity owners, Altas Partners and Leonard Green & Partners have reportedly appointed advisers to solicit interest in the company. According to Bloomberg sources, who asked not to be identified as discussing confidential information, the effort is set to kick off early next year. 

Based in Toronto, Atlas Partners purchased Tecta in 2018 for an undisclosed sum from Onex Corp., while Leonard Green acquired a minority stake in 2021. Tecta had self-reported revenue of approximately $1.4 billion in 2023; Bloomberg sources said the company could be valued at between $3 billion and $4 billion and is expected to attract interest from peers and other private equity firms. 

Tecta America was formed in 2000 by consolidating several regional roofing companies. The Rosemont, Ill.-based firm now employs more than 4,300 professionals in 32 states. Over its first two decades, the company grew from 17 to 75 locations nationwide through an aggressive growth strategy to expand its footprint and diversify its capabilities. 

In an August 2024 Roofing Contractor Q&A with Tecta’s leadership, CEO Dave Reginelli mentioned the crucial role private equity now plays in roofing expansion, saying, "…access to capital and strategic partnerships has allowed us to elevate our industry standards.” 

He views private equity as a strategic financial tool that aligns well with Tecta’s long-term goals. During that same conversation, Mark Santacrose, Tecta’s executive chairman, added that despite private equity’s ability to generate value, he expressed concern about new investors who may lack the understanding needed for sustainable success in a now prescient statement.

“A challenge that folks new to the industry are going to have,” Santacrose said, was how “folks that want to make a bunch of acquisitions and then dissolve the business but don’t do the hard work of integration…” will find integrating disparate systems challenging. 

When asked how the industry would know when the private equity spigot would be turned off, Santacrose's replied in a way similar to what one might hear sitting at the blackjack table during a hot shoe: “It dries up with the returns. If returns continue to be strong, it’ll continue to be strong.”

What the future holds for Tecta remains uncertain and will unfold in the coming months. Last summer, Reginelli sounded bullish, stating that the firm's pipeline has never been more extensive.

“I’d say it’s never been more active than now, and we’re going to be focused on that, and I think 2024 is going to be better than 2023,” Reginelli said. “We’ll see how 2025 develops, but I think all signs are positive right now.”

In response to comment on this story, Tecta’s CFO, Marc Benson, emailed a statement saying, “There is a lot of private equity activity in the roofing industry, and our investors explore refinancing opportunities from time to time,” adding, “There is nothing more than speculation at this time.”

Representatives Altas and Leonard Green each declined to comment.