Private Equity/Venture Capital Backed
Tecta America Corp. was formed in 2000 as a consolidation of 10 regional roofing contracting firms. Shortly after, the original backers of the business realized that running a national company with a desire to grow was different than running one of the individual businesses, so Mark Santacrose was brought in as president and CEO in April 2001.
He saw the opportunity to establish best practices, and by doing that, it would lead to additional consolidation in a fragmented industry, but the path wasn’t easy. Just a few months after joining, employees watched in horror from their New Jersey office as planes hit the World Trade Center, crumbling the towers and the real estate and construction markets, as well, which stunted the company’s growth plans. Santacrose decided to defer a guaranteed bonus and reinvest in the company while navigating a complex refinancing structure.
As the construction market recovered, Tecta quickly rebounded and posted growth rates higher than 300 percent over the next six years through organic methods and strategic acquisitions. These accomplishments also attracted the attention of additional investors, and at the end of 2006, the company was acquired by private equity firm KRG Capital, which provided liquidity to the original owners and an accelerated growth platform.
However, Santacrose faced yet another challenge in 2008 when the financial crisis led to the largest downturn in construction market history. Revenue fell as building owners delayed new construction, but Santacrose reacted quickly by implementing an aggressive cost-cutting program. The result? Gross margins remained nearly identical with those at the height of the boom, allowing the company to survive the downturn.
How to reach: Tecta America Corp., (847) 581-3881 or www.tectaamerica.com