TopBuild Acquires Specialty Products and Insulation (SPI) in All-Cash Transaction Valued at $1 Billion

Rhea-AI Summary

TopBuild (NYSE:BLD) completed an all-cash acquisition of Specialty Products and Insulation (SPI) for $1.0 billion, closing on Oct 7, 2025. SPI generated approximately $700M revenue and $75M EBITDA for the trailing 12 months ended June 30, 2025. The deal was funded with cash on hand and proceeds from a September senior notes issuance. TopBuild expects $35–$40M of annual run-rate cost synergies within two years, which reduces the effective transaction multiple to about 8.3x EBITDA and is expected to be immediately accretive to EPS.

The acquisition expands fabrication capabilities, extends TopBuild's geographic footprint across North America, strengthens exposure to commercial and industrial end markets, and increases non-cyclical recurring revenue.

Positive

• SPI revenue of ~$700M trailing 12 months
• SPI EBITDA of ~$75M trailing 12 months
• $35–$40M expected annual run-rate cost synergies within two years
• Transaction is immediately accretive to EPS
• 55% of SPI revenue from recurring maintenance and repair

Negative

• Headline purchase price implies 12.4x trailing EBITDA pre-synergies
• Deal funded with cash plus proceeds from September senior notes, increasing leverage risk
• Acquisition excludes SPI’s MBI business, limiting scope of assets acquired

Insights

Strategic M&A Analyst

TopBuild closed a $1.0 billion all‑cash acquisition of SPI, immediately accretive and targeting $35–$40M annual synergies within two years.

TopBuild acquires Specialty Products and Insulation (SPI) for $1.0 billion in cash, funded with cash on hand and recent senior notes. SPI reported about $700 million in revenue and $75 million EBITDA for the trailing twelve months ended June 30, 2025. The deal multiple is stated at 12.4x EBITDA inclusive of a $70 million tax asset and falls to an effective 8.3x EBITDA after expected synergies of $35 to $40M within two years, and management reports the transaction is immediately accretive to EPS.

The business impact centers on scale and revenue mix improvement. SPI brings a larger mechanical insulation fabrication footprint and recurring maintenance and repair revenue, cited as approximately 55% of SPI revenue, while roughly 87% of SPI revenue is commercial and industrial. Key dependencies include timely realization of the stated $35–$40M cost synergies and successful integration of SPI's ~1,000 employees and 90 branches. Monitorable near-term items are synergy run‑rate progress and integration milestones, the effects of the senior notes funding on interest expense and leverage, and reported post-close revenue and EBITDA trends over the next 24 months.

Reinforces TopBuild’s Leadership Position in Specialty Distribution, 
Extends Geographic Footprint and Expands Mechanical Insulation Fabrication Capabilities

Further Grows TopBuild’s Presence in Commercial and Industrial End Markets and Strengthens Non-Cyclical Revenue Stream

Expects $35 to $40M in Annual Run-Rate Cost Synergies

DAYTONA BEACH, Fla., Oct. 08, 2025 (GLOBE NEWSWIRE) -- TopBuild Corp. (NYSE:BLD), a leading installer of insulation and commercial roofing and a specialty distributor of insulation and related building material products to the construction industry in the United States and Canada, announced that it successfully acquired Specialty Products and Insulation (SPI), a leading specialty distributor and fabricator of mechanical insulation solutions for the commercial, industrial and residential end markets in North America, for $1.0 billion in cash. The acquisition closed on October 7 and was funded with cash on hand, including proceeds from the September senior notes issuance. The acquisition excludes SPI’s metal building insulation (“MBI”) 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 approximately 12.4x SPI’s earnings before interest, taxes, depreciation and amortization (EBITDA) for the trailing twelve months ended June 30, 2025, inclusive of a $70 million tax asset. Considering synergies of $35-$40 million within two years, the transaction multiple is 8.3x EBITDA. The transaction is immediately accretive to earnings per share.

Robert Buck, President and Chief Executive Officer of TopBuild, stated, “The SPI acquisition is highly strategic for 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. The transaction also drives our growth in non-cyclical revenue streams given that approximately 55% of SPI’s revenue relates to recurring maintenance and repair. We are excited to welcome SPI’s talented and experienced team to TopBuild.”

Ray Sears, President and Chief Executive Officer of SPI, added, “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. Both companies have similar corporate cultures with an emphasis on safety, respect, and a continued drive to improve.”

Based in Charlotte, North Carolina, SPI employs approximately 1,000 people across 90 branches and serves a broad base of customers across North America.

SPI Acquisition Advances TopBuild’s Growth Strategy and Drives Strong Returns:

• Brings together two leading specialty distributors with strong commercial and industrial end market mix and complementary product offerings: Reinforces TopBuild’s leadership position in specialty distribution to drive further innovation and even better meet customers’ needs. Approximately 87% of SPI’s revenue is related to commercial and industrial end markets.
• Extends geographic footprint and expands mechanical insulation fabrication capabilities in a highly fragmented industry, enabling opportunities to drive operational efficiencies throughout the Specialty Distribution segment.
• Improves non-cyclical revenue mix: Approximately 55% of SPI’s revenue is driven by recurring maintenance and repair, improving TopBuild’s exposure to non-cyclical revenue.
• Drives strong return on invested capital and leverages core M&A strength: TopBuild expects to realize approximately $35-$40 million in annual run-rate cost synergies within two years. M&A is a core strength of TopBuild, which has a proven track record of creating significant value, having successfully completed 45 acquisitions since the spin-off in 2015 and generating an 18.2% return on invested capital as of December 31, 2024.

Advisors

Guggenheim Securities, LLC and J.P. Morgan Securities LLC are serving as financial advisors to TopBuild and Jones Day acted as legal counsel. Piper Sandler acted as financial advisor to SPI and Kirkland & Ellis acted as legal counsel.

Conference Call Webcast Information

A conference call to discuss the transaction is scheduled for today, October 8 at 9:00 a.m. Eastern Time. The live call can be accessed by dialing (877) 407-9037. A simultaneous webcast of the call, along with management’s formal remarks and a presentation, will be available on the Company’s website at www.topbuild.com shortly before the call begins.

About TopBuild

TopBuild Corp., headquartered in Daytona Beach, Florida, is a leading installer of insulation and commercial roofing and is also a specialty distributor of insulation and related building material products to the construction industry in the United States and Canada. We provide insulation and commercial roofing installation services nationwide through our Installation segment which has over 200 branches located across the United States. We distribute building and mechanical insulation, insulation accessories and other building product materials for the residential, commercial, and industrial end markets through our Specialty Distribution business. Our Specialty Distribution network encompasses more than 150 branches across the United States and Canada. To learn more about TopBuild please visit our website at www.topbuild.com.

Safe Harbor Statement

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements may address, among other things, our expected financial and operational results and the related assumptions underlying our expected results. These forward-looking statements are distinguished by use of words such as “will,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” or “intend,” the negative of these terms, and similar references to future periods. These views involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. Our forward-looking statements contained herein speak only as of the date of this press release. Factors or events that we cannot predict, including those described in the risk factors contained in our filings with the Securities and Exchange Commission, may cause our actual results to differ from those expressed in forward-looking statements. Although TopBuild believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be achieved and it undertakes no obligation to update any forward-looking statements as a result of new information, future events, or otherwise, except as required by applicable law.

	TopBuild Corp.
	Unaudited Pro Forma Net Debt Leverage
			Trailing Twelve Months Ended June 30, 2025
			Historical TopBuild (1)			Pro Forma Progressive			Pro Forma SPI			Pro Forma Combined
	Net sales	$	5,248		$	438		$	699		$	6,385
	EBITDA, as adjusted (2)	$	1,044		$	89		$	75		$	1,208
	Net debt, total (3)										$	2,900
	Net debt leverage											2.4	x
	(1) As disclosed and reconciled in previous quarterly filings with the U.S. Securities and Exchange Commission, adjusted for $32.3 million of sales and $4.7 million of pro forma adjusted EBITDA for acquisitions completed prior to June 30, 2025.
	(2) Earnings before interest, taxes, depreciation, and amortization as defined in our credit agreement.
	(3) Includes $750 million senior notes issued in September 2025. Net proceeds from the senior notes along with cash on hand was used to purchase SPI on October 7, 2025 for $1.0 billion.

TopBuild Corp.
Unaudited EBITDA to Net Income Reconciliation
($ in millions)
	Trailing Twelve Months Ended June 30, 2025
		Historical TopBuild			Pro Forma Progressive			Pro Forma SPI				Pro Forma Combined
Net income, as reported	$	594		$	50		$	(10)			$	634
Adjustments to arrive at EBITDA, as adjusted:
Interest expense and other, net		59			9			40				108
Income tax expense		206			19			4				229
Depreciation and amortization		143			11			40				194
Share-based compensation		17			-			-				17
Rationalization charges		15			-			-				15
Acquisition related costs		6			-			-				6
EBITDA, as adjusted	$	1,039		$	89		$	75			$	1,203
Pro forma acquisition EBITDA (a)		5			-			-				5
Pro forma TTM EBITDA, as adjusted	$	1,044		$	89		$	75			$	1,208
(a) Represents the trailing twelve months pro forma impact of acquisitions completed prior to June 30, 2025.

This press release was published by a CLEAR® Verified individual.

Investor Relations and Media Contact

PI Aquino
pi.aquino@topbuild.com
386-763-8801

FAQ

What did TopBuild (BLD) pay to acquire SPI and when did the deal close?

TopBuild paid $1.0 billion in cash and the acquisition closed on October 7, 2025.

How large was SPI in revenue and EBITDA prior to the acquisition?

SPI reported approximately $700 million in revenue and $75 million in EBITDA for the trailing 12 months ended June 30, 2025.

How much synergy and EPS impact does TopBuild expect from the SPI acquisition?

TopBuild expects $35–$40 million of annual run-rate cost synergies within two years, and management says the deal is immediately accretive to earnings per share.

How was the SPI acquisition funded and does it affect TopBuild’s leverage?

The acquisition was funded with cash on hand and proceeds from a September senior notes issuance, which increases the company’s use of debt financing.

What parts of SPI were excluded from the sale to TopBuild?

The transaction excludes SPI’s metal building insulation (MBI) business.

How does the SPI deal change TopBuild’s revenue mix and market exposure?

The acquisition increases exposure to commercial and industrial end markets (about 87% of SPI revenue) and raises non-cyclical recurring revenue (about 55% of SPI revenue).