Stronghouse Taps Southeast Florida Legacy with Gustafson Roofing Acquisition

Stronghouse Solutions has taken a significant step in extending its reach in Florida by acquiring Gustafson Roofing - a family-owned business based in Boynton Beach with roots going back to the 1940s. This transaction is more than a geographic expansion: it's a strategic alignment that brings together Stronghouse’s platform capabilities with Gustafson’s deep customer relationships and local brand heritage.

Deal Summary

• Acquirer: Stronghouse Solutions, a national platform for residential exterior services.
• Seller / Target: Gustafson Roofing, founded in 1948 and headquartered in Boynton Beach, Florida.
• Leadership Continuity: Gustafson remains led by its third-generation leadership team: Frank Mercado (CEO), Ryan Gustafson, and Mike Gustafson Jr.
• Business Focus: Residential roofing and exterior services, with a strong footprint in Palm Beach County and surrounding Southeast Florida communities.
• Strategic Rationale: Stronghouse plans to deploy its operational infrastructure - including capital, tech, and processes - to help Gustafson scale deeper in its existing market and expand regionally.
• Sponsor: O2 Investment Partners, which backs Stronghouse and invests in lower-middle-market service businesses.

Industry Context

The exterior-services sector - roofing in particular - continues to attract consolidation. Many regional players are well regarded locally but lack the infrastructure or capital to scale aggressively. Players like Stronghouse are building national platforms by aligning with long-standing, reputable contractors.

This model allows a local business to maintain its identity while benefiting from centralized support: shared back-office systems, procurement, and technology. For Stronghouse, acquiring Gustafson gives it a stronger foothold in Southeast Florida, a high-growth market, while preserving Gustafson’s legacy and customer trust.

Additionally, roofing services remain a compelling consolidation target because they combine recurring maintenance potential with high-stakes capital-replacement work. Homeowners demand quality and reliability, creating stickiness - and platforms that can scale efficiently can deliver this while improving margins through better systems.

Lower-Middle-Market Roll-Up Perspective

From a private equity roll-up standpoint, Stronghouse’s acquisition aligns with several strategic principles:

1. Platform Build via Regional Leaders: Rather than planting a new branch, Stronghouse is integrating an established player with decades of local market penetration.
2. Preserving Founder/Operator Culture: Gustafson’s leadership remains in place, which helps retain customer relationships, brand reputation, and technical skill.
3. Operational Leverage: Stronghouse’s support (processes, technology, capital) can help Gustafson formalize operations, improve scalability, and accelerate growth without losing agility.
4. Capital Efficiency: O2’s backing allows Stronghouse to fund this acquisition and future ones without overleveraging, emphasizing sustainable long-term value creation.
5. Strategic Network Density: With Gustafson added, Stronghouse can make Southeast Florida a regional hub within its broader external-services network, improving its ability to serve homeowners and grow its business.

Why This Sector Is Attractive for Roll-Ups

• High Fragmentation: There is a large universe of regional roofers, many with strong reputations but limited scale.
• Consistent Demand: Roof replacement, repair, and maintenance remain steady, driven by weather risk, home equity, and aging housing stock.
• Capital Availability: PE firms are increasingly backing consolidators in exterior trades, seeing predictable cash flow and growth potential.
• Operational Synergies: Platforms benefit from centralizing administrative functions, training, supply chain, and technology.
• Value Preservation: By acquiring legacy players rather than displacing them, platforms can maintain the local trust that drives referrals and repeat business.

Conclusion

Stronghouse’s acquisition of Gustafson Roofing reinforces its strategic focus: building a national exterior-services platform by partnering with regionally respected, operator-led businesses. For Gustafson, the deal brings access to greater resources, operational sophistication, and growth capital - while preserving its identity and leadership.

For private equity firms, this deal illustrates how a thoughtful roll-up strategy can combine legacy strength with scale advantages. And for regional exterior-services operators considering a partnership or sale, Stronghouse’s model presents a compelling path to scale without sacrificing business autonomy or customer trust.