SRS Distribution quickly expands new subsidiary

2/1/2019
SRS Distribution, the Texas roofing and building products distributor, has formed a new subsidiary that is quickly getting down to business.

Heritage Landscape Supply Group, Inc. has acquired CPS Distributors, Inc. (CPS) and Automatic Supply.

Based in Westminster, Colo. and founded in 1890, CPS is one of the largest wholesale distributors of irrigation and landscape supplies in the Rocky Mountain region. CPS serves landscape and irrigation contractors, municipalities, pump and well contractors, and other professional contractors through a 13-branch network across Colorado and Wyoming.

Headquartered in Fishers, Indiana and founded in 1982, Automatic distributes landscaping, irrigation, outdoor lighting, and related products throughout the state of Indiana. Automatic serves a diverse group of professional landscape, irrigation, and outdoor lighting contractors through its network of 4 branches.

Terms of the deals were not disclosed but SRS noted that the management teams of CPS and Automatic will remain in place.

Lowell Kaufhold, president of CPS, and Steve Christie, president of Automatic, will remain actively involved, be co-investors, and join forces together as “founding fathers” of the new Heritage platform, “helping to guide the company’s strategy,” SRS said.

SRS formed Heritage to acquire CPS, Automatic, and additional independent irrigation and landscape supply businesses, the distributor said in a statement. Plans for Heritage include growing the subsidiary by forming a national network of independent distributors.

Based in McKinney, Texas, SRS also said the strategy for Heritage includes maintaining the local brand identity and management of locations it acquires. Eventually the group will run as “a family of independents as opposed to a national platform,” SRS said.

Additionally, Matt McDermott has been appointed president of Heritage. McDermott previously held the position of vice president of corporate strategy for SRS.

“We intend to acquire additional leading distributors who seek to accelerate growth through our partnership while preserving legacy cultures and operating approaches that have contributed to success. Looking ahead, we will continue to win with a people-first culture and provide unlimited resources to grow our local brands around the best teams of people in each market where we operate,” McDermott said.

SRS Distribution operates 250 locations under 27 brands in 44 states. SRS is a portfolio company of Leonard Green & Partners, L.P. and Berkshire Partners LLC.
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