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TopBuild Corp. (NYSE:BLD) on Wednesday announced that it has finalized its purchase of Specialty Products and Insulation, better known as SPI, for approximately $1 billion in cash.
The deal, completed on October 7, bolsters TopBuild's standing as a dominant player in mechanical insulation and specialty distribution across North America.
The company funded the acquisition with existing liquidity and proceeds from its September senior notes offering.
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The agreement does not include SPI's metal building insulation segment.
SPI generated roughly $700 million in revenue and $75 million in EBITDA over the twelve months ending June 30, 2025. TopBuild said the acquisition equates to around 12.4 times SPI's trailing EBITDA, factoring in a $70 million tax benefit.
Once cost synergies of $35 million to $40 million are realized within two years, the effective multiple drops to about 8.3 times. The purchase is expected to be immediately accretive to earnings per share.
Robert Buck, President and CEO of TopBuild, called the move "highly strategic," noting that SPI's manufacturing reach and service expertise expand TopBuild's footprint while enhancing its customer offerings.
He added that roughly 55% of SPI's business comes from recurring maintenance and repair, strengthening the company's exposure to less cyclical revenue sources.
Ray Sears, SPI's President and CEO, said the two firms share a similar culture centered on safety, respect, and continuous improvement.
"We believe TopBuild is the best strategic owner for our business," he said, adding that the combination better positions the merged entity to deliver innovative, high-quality solutions to clients.
Headquartered in Charlotte, North Carolina, SPI operates about 90 branches with nearly 1,000 employees serving a diverse customer base. Approximately 87% of its revenue is tied to commercial and industrial sectors, a mix that aligns with TopBuild's existing specialty distribution network.
The acquisition is also expected to enhance fabrication capabilities and streamline operations in what remains a fragmented industry.
TopBuild emphasized that mergers and acquisitions remain central to its growth model. Since its 2015 spin-off, the company has completed 45 acquisitions and achieved an 18.2% return on invested capital as of the end of 2024.
Price Action: BLD shares fell 0.32% on Tuesday, closing at $396.24.
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