2023-07-27 18:39:21 ET
- TopBuild ( NYSE: BLD ) on Thursday said it would acquire Specialty Products & Insulation (SPI) in an all-cash transaction valued at $960M.
- According to BLD, SPI is a North American specialty distributor and custom fabricator of mechanical insulation and a specialty distributor of building insulation.
- The acquisition will expand BLD's specialty distribution footprint, and the company expects $35M to $40M of run-rate cost synergies from the deal.
- "SPI has a broad customer base, an experienced and talented operating team, and a fabrication footprint complementary to our current mechanical insulation business," BLD CEO Robert Buck said in a statement .
- BLD plans to fund the deal with a new $550M term loan A and cash on hand. BLD will also benefit from a $90M tax asset as a result of the transaction.
- BLD said for the year ended March 31, SPI generated pro forma revenue of about $703M and adj. EBITDA of $77M.
- TopBuild ( BLD ) stock earlier closed -1.8% at $265.93.
For further details see:
TopBuild to buy Specialty Products & Insulation in all-cash deal valued at $960M