POWAY, Calif. — Things are heating up for Solar Integrated Roofing Corp. after announcing plans to acquire four companies in the fourth quarter.

Solar Integrated Roofing Corp. describes itself as “an integrated solar and roofing installation company specializing in commercial and residential properties with a focus on acquisitions of like companies to build a footprint nationally.”

The company said it is essentially making moves to take advantage of new requirements in California that call for new residential homes to have solar panel technology. 

Here are the deals recently announced:

  • Nov. 2: Announced plans to acquire a San Diego-based direct marketing firm. The company was not identified by Solar Integrated Roofing said in a release it had revenue in 2017 of $2.5 million and gross profit of $600,000. "This acquisition is an ideal vehicle to accelerate growth as soon as Q1-2019 by generating home improvement leads for Solar and Roofing projects," said David Massey.
  • Nov. 7: Announced plans to acquire a 20-year-old San Diego-based roofing company. The company was not identified.
  • Nov. 14: Announced plans to acquire a “well-established San Diego-based rain gutter company.” "The target company has a book of 30,000 current and previous clients that our sales team can market roofing and solar projects to. An extremely conservative success rate of only 5 percent will translate to new revenues of nearly $45 million." Massey further stated that this acquisition fits in perfectly with those recently announced. "We are building a multifaceted company with several services and revenue streams. Each will complement one another and we will achieve exponential growth. This is truly a period of exceptional growth here at (Solar Integrated)."
  • Nov. 28: Announced plans to acquire a roofing company with $5 million in revenue. "We couldn't be more enthusiastic about this deal," said Massey. "This is a 35 year-old company with over 25,000 past clients that we can market our rooftop solar installations to. They fit in perfectly with our existing business model and have excellent profit margins as well."

Massey said the company expects to close the four deals by either the end of 2018 or in the first quarter of 2019.

Additionally, up to three more acquisitions could be announced in the first quarter of 2019.

“Each of the planned acquisitions are very profitable and individually have impressive upward growth curves,” Massey said. “Given the 2020 implementation of California's requirement that all new home construction be powered by solar energy, there isn't a better time to be growing in the California roofing industry."

Concurrently, the company is taking steps to be more attractive to investors.

Solar Integrated currently trades on the OTC Pink Open Market (SIRC) and plans to seek an uplisting in early 2019. If approved, the company would file regular financial reports instead of the voluntary statements allowed via status as company operating in the Pink Open Market.

Financial results for 2018 are expected to be completed in February 2019. The company didn’t say when, or if, results would be shared publicly.

The company also has hired a new director of shareholder relations, Marlena LeBrun, “in an effort to improve shareholder relations and promote greater company transparency.”

Shares of Solar Integrated hit a 52-week high of 48 cents a share on Jan. 25 but have fallen to a current price of 10 cents.

Last, the company also is updating its website “to better inform and educate visitors with all corporate information, including a revamped Investor Relations/Company Stock page.”

"These are very exciting days for SIRC, and it's time our image better reflected that," said Massey.  "We care about building an even more successful business, and increasing shareholder value is at the forefront of our efforts. We look forward to a breakout 2019."

The planned acquisitions announced by Solar Integrated Roofing join a list of more than 30 acquisitions Roofing Contractor has written about in 2018.