TopBuild to acquire Progressive Roofing for $810M in cash

TopBuild (BLD) has entered into an agreement to acquire Progressive Roofing, a portfolio company of Bow River Capital, for $810M in cash. This represents approximately 9.1x Progressive’s EBITDA for the trailing twelve months ended March 31, 2025, and a multiple of 8.6x EBITDA post-synergies, considering $5M in synergies. The transaction is expected to be immediately accretive to adjusted EPS. Founded in 1978, Progressive Roofing is a provider of commercial roofing installation services in the U.S., with a comprehensive offering that includes re-roofing, recurring maintenance services, and new construction. The company serves attractive commercial verticals, including education, technology, industrial, healthcare and government. Progressive generated $438M in revenue and $89M in EBITDA for the trailing 12 months ended March 31. Approximately 70% of the company’s revenue is related to non-discretionary re-roofing and maintenance, while approximately 30% is from new construction. Based in Phoenix, Progressive employs more than 1,700 people across 12 branches. The transaction will be funded with proceeds from TopBuild’s recently expanded credit facility and cash on hand and is expected to close early in Q3, subject to regulatory approvals and customary closing conditions. Pro forma Net Debt to Adjusted EBITDA for Q1 is approximately 1.6x.