XLCS Partners Facilitates Strategic Sale of American Building Contractors to Diversified Roofing Group

XLCS Partners Advises on Major Acquisition

On February 7, 2025, XLCS Partners, Inc., a prominent middle-market investment bank, proudly announced its role as the exclusive advisor to American Building Contractors, Inc. (ABC) during its successful sale to 39N Diversified Roofing Holdings, LLC (DRG). This strategic move marks a significant milestone in the roofing industry, showcasing the ongoing consolidation and growth among key players.

Founded in 1998, American Building Contractors has distinguished itself within the roofing sector by specializing in various re-roofing solutions, including multi-family, commercial and industrial, as well as single-family residential projects. With licenses in over 42 states, ABC has built a reputation for focusing on regions known for stringent construction codes and challenging weather patterns. This niche positioning has made ABC a trusted name in the industry, recognized for its quality service and reliability.

On the other hand, Diversified Roofing Group, headquartered in Phoenix, Arizona, has been a leading national provider of roofing services for over 36 years. DRG specializes not only in re-roofing but also in maintenance services catering to both commercial and residential clients. Its expertise across diverse end markets, combined with an integrated platform of attractive brands, enables DRG to deliver scalable solutions to a broad customer base.

The acquisition of ABC enhances DRG's market presence, allowing it to expand its portfolio and service offerings significantly. This strategic alignment positions DRG to continue leading in a competitive and evolving roofing market. Paul Woodward, President and Owner of ABC, expressed his gratitude towards XLCS Partners, stating, "I was extremely impressed with the guidance provided by Anthony Contaldo and the team at XLCS throughout every stage of the process. Their expertise, professionalism, and dedication were instrumental in navigating the sale of my business."

This transaction highlights the role of investment banks like XLCS Partners in facilitating mergers and acquisitions in specialized markets. Anthony Contaldo, a partner at XLCS, alongside Eric Schoendorf, Vice President, led the efforts that culminated in the successful completion of the transaction on October 24, 2024.

As the roofing sector continues to mature, consolidation will remain a primary strategy for enhancing competitive advantages. Companies like ABC and DRG are adapting to market demands by joining forces, thereby amplifying their capabilities and operational efficiencies.

XLCS Partners continues to be at the forefront of advising middle-market clients in their strategic maneuvers, ensuring that they not only survive but thrive in their respective industries. Founded on a foundation of integrity and exceptional service, XLCS has positioned itself as an indispensable player in the ever-evolving landscape of investment banking.

For more information about XLCS Partners and its advisory services, visit www.xlcspartners.com.