Street Calls of the Week
Investing.com -- TopBuild Corp (NYSE:BLD) has acquired Specialty Products and Insulation (SPI) for $1 billion in an all-cash transaction, strengthening its position in specialty distribution and expanding its presence in commercial and industrial markets.
The acquisition, which closed on October 7, was funded with cash on hand, including proceeds from a September senior notes issuance. The deal excludes SPI’s metal building insulation business.
SPI generated approximately $700 million in revenue and $75 million in EBITDA for the trailing twelve months ended June 30, 2025. The transaction represents about 12.4x SPI’s EBITDA, but drops to 8.3x when considering expected synergies of $35-$40 million within two years. TopBuild expects the acquisition to be immediately accretive to earnings per share.
"The SPI acquisition is highly strategic for TopBuild," said Robert Buck, President and CEO of TopBuild. "The addition of SPI’s resources and capabilities further enhances our customer value proposition while its complementary fabrication footprint strengthens and expands our presence across North America."
Ray Sears, President and CEO of SPI, stated, "We believe TopBuild is the best strategic owner for our business, better positioning the combined organization to provide customers with innovative and high-quality solutions."
The acquisition advances TopBuild’s growth strategy by bringing together two leading specialty distributors with complementary product offerings, extending geographic footprint, expanding mechanical insulation fabrication capabilities, and improving non-cyclical revenue mix.
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