TopBuild acquires four companies adding $53 million in annual revenue

DAYTONA BEACH, Fla. - TopBuild Corp. (NYSE:BLD), a provider of insulation installation and distribution services with a market capitalization of $11.82 billion, announced Monday it has acquired three companies and entered into an agreement to purchase a fourth, collectively adding approximately $53 million in annual revenue. The company, which trades at a P/E ratio of 20.79, is set to report its quarterly earnings on November 4.

The acquisitions include Insulation Fabrics of Alpharetta, Georgia, acquired in September; Diamond Door Products of Hempstead, Texas, and Performance Insulation Fabricators of Nashville, Tennessee, both acquired in October. The company has also agreed to acquire L&L Insulation of Fort Collins, Colorado, with the transaction expected to close in November.

Insulation Fabrics, a distributor of insulation netting and protective equipment, generates approximately $6.1 million in annual revenue. Diamond Door Products, which fabricates insulated steel door systems for commercial and industrial metal buildings, contributes about $30.4 million in annual revenue with locations in Texas, Georgia, and Indiana.

Performance Insulation Fabricators, which distributes mechanical insulation for commercial and industrial markets, adds approximately $8.9 million in revenue. L&L Insulation, a residential fiberglass and spray foam installation business serving northern Colorado and southern Wyoming, generates about $7.2 million annually.

"These four transactions strengthen our businesses," said Robert Buck, President and CEO of TopBuild, according to the company's press release. He noted that the acquisitions expand the company's product offerings in insulation accessories and mechanical insulation, enhance its metal building solutions capabilities, and extend its geographic reach in the mountain states.

TopBuild operates through its Installation Services segment with over 200 branches across the United States and its Specialty Distribution business with more than 250 branches throughout the United States and Canada.

In other recent news, TopBuild Corp completed a significant acquisition of Specialty Products and Insulation (SPI) for $1 billion in an all-cash transaction. This strategic move is expected to enhance TopBuild's position in specialty distribution and expand its footprint in the commercial and industrial markets. The acquisition was finalized on October 7, 2025, and was funded through cash on hand, including proceeds from a senior notes issuance in September. SPI, headquartered in Charlotte, North Carolina, reported approximately $700 million in revenue and $75 million in EBITDA for the twelve months ending June 30, 2025.

Following this acquisition, several analyst firms have adjusted their outlooks on TopBuild. DA Davidson reiterated its Buy rating with a price target of $465.00, emphasizing the strategic importance of the acquisition. Truist Securities raised its price target to $390.00 from $370.00, maintaining a Hold rating, and noted the potential for quick supply-side synergies despite initially lower margins. Evercore ISI also increased its price target to $449.00 while maintaining an "In Line" rating, acknowledging the strengthened market position resulting from the acquisition. These developments reflect the market's response to TopBuild's strategic expansion efforts.

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