TopBuild acquires Specialty Products and Insulation for $1B in cash

TopBuild (BLD) announced that it successfully acquired Specialty Products and Insulation, a specialty distributor and fabricator of mechanical insulation solutions for the commercial, industrial and residential end markets in North America, for $1B in cash. The acquisition closed on October 7 and was funded with cash on hand, including proceeds from the September senior notes issuance. The acquisition excludes SPI’s metal building insulation business. SPI generated approximately $700M in revenue and $75M in EBITDA for the trailing twelve months ended June 30, 2025. The transaction represents approximately 12.4x SPI’s earnings before interest, taxes, depreciation and amortization for the trailing twelve months ended June 30, 2025, inclusive of a $70M tax asset. Considering synergies of $35M-$40M within two years, the transaction multiple is 8.3x EBITDA. The transaction is immediately accretive to earnings per share.