TopBuild to Acquire Progressive Roofing in All-Cash Transaction Valued at $810 Million, Creating a New Growth Platform
TopBuild (NYSE:BLD) has announced the acquisition of Progressive Roofing for $810 million in an all-cash transaction. Progressive Roofing, currently owned by Bow River Capital, generated $438 million in revenue and $89 million in EBITDA for the trailing 12 months ended March 31, 2025.
The acquisition represents a 9.1x EBITDA multiple (8.6x post-synergies) and is expected to be immediately accretive to earnings. Progressive Roofing employs over 1,700 people across 12 branches, with approximately 70% of revenue coming from non-discretionary re-roofing and maintenance services, and 30% from new construction.
The transaction is expected to close in early Q3 2025, funded through TopBuild's expanded credit facility and cash on hand. The pro forma Net Debt to Adjusted EBITDA ratio will be approximately 1.6x.
TopBuild (NYSE:BLD) ha annunciato l'acquisizione di Progressive Roofing per 810 milioni di dollari in un'operazione completamente in contanti. Progressive Roofing, attualmente di proprietà di Bow River Capital, ha generato 438 milioni di dollari di ricavi e 89 milioni di dollari di EBITDA negli ultimi 12 mesi terminati il 31 marzo 2025.
L'acquisizione rappresenta un multiplo EBITDA di 9,1x (8,6x dopo sinergie) e si prevede che sarà immediatamente accretiva per gli utili. Progressive Roofing impiega oltre 1.700 persone in 12 filiali, con circa il 70% dei ricavi derivanti da servizi non discrezionali di rifacimento e manutenzione del tetto, e il 30% da nuove costruzioni.
La transazione dovrebbe concludersi all'inizio del terzo trimestre 2025, finanziata tramite la linea di credito ampliata di TopBuild e liquidità disponibile. Il rapporto pro forma tra Debito Netto e EBITDA Adjusted sarà di circa 1,6x.
TopBuild (NYSE:BLD) ha anunciado la adquisición de Progressive Roofing por 810 millones de dólares en una transacción completamente en efectivo. Progressive Roofing, actualmente propiedad de Bow River Capital, generó 438 millones de dólares en ingresos y 89 millones de dólares en EBITDA en los últimos 12 meses terminados el 31 de marzo de 2025.
La adquisición representa un múltiplo EBITDA de 9,1x (8,6x después de sinergias) y se espera que sea inmediatamente accretiva para las ganancias. Progressive Roofing emplea a más de 1,700 personas en 12 sucursales, con aproximadamente el 70% de los ingresos provenientes de servicios no discrecionales de retechado y mantenimiento, y el 30% de nueva construcción.
Se espera que la transacción se cierre a principios del tercer trimestre de 2025, financiada a través de la línea de crédito ampliada de TopBuild y efectivo disponible. La proporción pro forma de Deuda Neta a EBITDA Ajustado será aproximadamente de 1,6x.
TopBuild (NYSE:BLD)는 Progressive Roofing를 8억 1천만 달러 현금 거래로 인수한다고 발표했습니다. 현재 Bow River Capital이 소유한 Progressive Roofing는 2025년 3월 31일로 끝나는 최근 12개월 동안 4억 3,800만 달러의 매출과 8,900만 달러의 EBITDA를 기록했습니다.
이번 인수는 EBITDA 배수 9.1배(시너지 효과 반영 후 8.6배)에 해당하며, 즉시 수익성 향상에 기여할 것으로 예상됩니다. Progressive Roofing는 12개 지점에서 1,700명 이상의 직원을 고용하고 있으며, 매출의 약 70%는 비선택적 지붕 교체 및 유지보수 서비스에서, 30%는 신규 건설에서 발생합니다.
거래는 2025년 3분기 초에 마무리될 예정이며, TopBuild의 확대된 신용한도와 현금으로 자금 조달됩니다. 프로포마 기준 순부채 대비 조정 EBITDA 비율은 약 1.6배가 될 것입니다.
TopBuild (NYSE:BLD) a annoncé l'acquisition de Progressive Roofing pour 810 millions de dollars dans le cadre d'une transaction entièrement en espèces. Progressive Roofing, actuellement détenue par Bow River Capital, a généré 438 millions de dollars de revenus et 89 millions de dollars d'EBITDA pour les 12 derniers mois se terminant le 31 mars 2025.
Cette acquisition représente un multiple d'EBITDA de 9,1x (8,6x après synergies) et devrait être immédiatement accretive aux bénéfices. Progressive Roofing emploie plus de 1 700 personnes réparties sur 12 agences, avec environ 70 % des revenus provenant de services non discrétionnaires de réfection et d'entretien de toitures, et 30 % de la nouvelle construction.
La transaction devrait être finalisée début du troisième trimestre 2025, financée par la ligne de crédit élargie de TopBuild et la trésorerie disponible. Le ratio pro forma Dette Nette sur EBITDA Ajusté sera d'environ 1,6x.
TopBuild (NYSE:BLD) hat die Übernahme von Progressive Roofing für 810 Millionen US-Dollar in einer reinen Barzahlungstransaktion bekanntgegeben. Progressive Roofing, derzeit im Besitz von Bow River Capital, erzielte für die letzten 12 Monate bis zum 31. März 2025 einen Umsatz von 438 Millionen US-Dollar und ein EBITDA von 89 Millionen US-Dollar.
Die Übernahme entspricht einem 9,1-fachen EBITDA-Multiplikator (8,6-fach nach Synergien) und wird voraussichtlich sofort gewinnsteigernd sein. Progressive Roofing beschäftigt über 1.700 Mitarbeiter an 12 Standorten, wobei etwa 70 % des Umsatzes aus nicht diskretionären Dachsanierungs- und Wartungsdienstleistungen stammen und 30 % aus Neubauten.
Der Abschluss der Transaktion wird für Anfang des dritten Quartals 2025 erwartet und durch die erweiterte Kreditfazilität von TopBuild sowie vorhandene Barmittel finanziert. Das pro forma Verhältnis von Nettoverschuldung zu bereinigtem EBITDA wird etwa 1,6x betragen.
- Immediately accretive to adjusted earnings per share
- Expands into $75B highly fragmented commercial roofing services market
- 70% of revenue comes from non-discretionary, non-cyclical services
- Conservative post-acquisition leverage at 1.6x Net Debt to Adjusted EBITDA
- Expected $5M in synergies post-integration
- Strong EBITDA margins with Progressive generating $89M on $438M revenue
- Significant cash outlay of $810 million may impact short-term liquidity
- Integration risks with 1,700+ new employees across 12 branches
- 30% exposure to more cyclical new construction market
Insights
TopBuild's $810M acquisition of Progressive Roofing expands its commercial offerings and adds significant non-discretionary revenue at a reasonable valuation.
TopBuild's
The transaction's financial profile is particularly attractive because
This acquisition gives TopBuild entry into the fragmented
The Progressive Roofing acquisition marks TopBuild's strategic evolution from primarily insulation-focused services to comprehensive building envelope solutions. This vertical integration enhances TopBuild's value proposition to commercial general contractors who increasingly prefer single-source providers for building envelope components.
Progressive's branch network across 12 locations with 1,700+ employees provides TopBuild immediate scale in commercial roofing without the typical startup challenges. The target company's focus on high-value commercial verticals (education, technology, industrial, healthcare, government) is particularly noteworthy as these sectors typically feature larger project sizes, longer planning horizons, and more stable funding compared to residential construction.
The industry dynamics are compelling - commercial roofing is driven by an aging building stock (most commercial roofs have 15-25 year lifespans) and increasing extreme weather events, creating non-discretionary replacement demand. Unlike new construction, re-roofing and maintenance services remain steady through economic cycles, which will help stabilize TopBuild's revenue during housing market fluctuations.
From a competitive positioning standpoint, this acquisition addresses a gap in TopBuild's commercial offering. While competitors like Installed Building Products have expanded into adjacent building envelope categories, TopBuild had remained more focused on its core insulation business. This move leapfrogs TopBuild ahead in commercial capabilities and creates a platform for consolidating the highly fragmented commercial roofing sector, where most competitors are regional players lacking Progressive's scale and sophistication.
Aligns with TopBuild’s Core Strengths
Expands Building Envelope Installation Solutions to Include
Comprehensive Suite of Commercial Roofing Services
Enables Significant Growth Potential in ~
Largely Non-Discretionary Commercial Roofing Services Industry
DAYTONA BEACH, Fla., July 08, 2025 (GLOBE NEWSWIRE) -- TopBuild Corp. (NYSE:BLD), a leading installer and specialty distributor of insulation and related building material products to the construction industry in the United States and Canada, announced that it has entered into an agreement to acquire Progressive Roofing, a portfolio company of Bow River Capital, for
Founded in 1978, Progressive Roofing is a leader in commercial roofing installation services in the United States, with a comprehensive offering that includes re-roofing, recurring maintenance services, and new construction. The company serves attractive commercial verticals, including education, technology, industrial, healthcare and government. Progressive generated
“Entering the large and growing Commercial Roofing business through the acquisition of Progressive Roofing is a natural next step for TopBuild. The acquisition of Progressive, one of the largest commercial roofing installers in the United States, will enable us to offer commercial customers more comprehensive building envelope installation solutions,” said Robert Buck, President and Chief Executive Officer of TopBuild. “In addition to increasing our revenue exposure to non-discretionary demand drivers, we anticipate that this acquisition will serve as a significant growth platform, both organically as well as through future M&A. Importantly, Progressive’s strategy and business model are closely aligned with ours, and we look forward to welcoming Progressive’s talented management team and employees to TopBuild.”
Nick Hadden, Chief Executive Officer of Progressive Roofing, added, “The entire Progressive Roofing team is excited to join forces with an industry leader that has a proven track record of growth. Our customer-centricity, focus on employees, and commitment to safety are well-matched with TopBuild’s core strengths. We believe that joining TopBuild will enable accelerated growth and allow us to create even more value for our customers.”
Progressive Roofing Acquisition is Accretive and Advances TopBuild’s Strategy:
- Aligns with TopBuild’s core strengths: Progressive Roofing utilizes a similar dispersed branch model with local empowerment and decision-making enabled by a branch support center. The company has made meaningful investments in technology that support data-driven insights and analytics. Like TopBuild, Progressive Roofing places great value on maintaining strong relationships with its supplier partners. The company also has a complementary culture of collaboration and a safety-first mentality. Finally, Progressive has a well-developed acquisition pipeline.
- Expands building envelope offering to general contractor customers: As one of the largest commercial roofing installation services companies in the U.S., the acquisition enables TopBuild to expand its offerings to commercial customers.
- Increases exposure to non-cyclical and non-discretionary revenue drivers: Demand in the commercial roofing services industry is largely related to non-cyclical and non-discretionary drivers, such as the age of a roof or weather-related damage. These drivers support Progressive’s revenue, given that approximately
70% is derived from re-roofing and maintenance and services. - Establishes scalable platform for growth in large and highly fragmented sector: The total addressable market for commercial roofing installation services is approximately
$75 billion and is highly fragmented. TopBuild and Progressive Roofing both have proven M&A track records, with robust acquisition processes in place.
Transaction Timing and Details
The transaction will be funded with proceeds from TopBuild’s recently expanded credit facility and cash on hand and is expected to close early in the third quarter of 2025, subject to regulatory approvals and customary closing conditions. Pro forma Net Debt to Adjusted EBITDA for the first quarter of 2025 is approximately 1.6x.
Advisors
RBC acted as financial advisor to TopBuild and Jones Day acted as legal counsel. Guggenheim Securities and Citizens JMP Securities acted as financial advisors and Brownstein, Hyatt, Farber, Schrek acted as legal counsel to Bow River Capital and Progressive Roofing.
Conference Call Webcast Information
A conference call to discuss the transaction is scheduled for today, Tuesday, July 8th, at 8:30 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 and specialty distributor of insulation and related building material products to the construction industry in the United States and Canada. We provide insulation installation services nationwide through our Installation segment which has approximately 250 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 approximately 190 branches across the United States and Canada. To learn more about TopBuild please visit our website at www.topbuild.com.
About Progressive Roofing
Progressive Roofing, a Bow River Capital portfolio company, began as a family operation in 1978 and has evolved into a nationwide force with approximately 1,700 employees, spanning four generations of roofers, and establishing 12 branch offices coast to coast. Progressive’s business philosophy is anchored in customer satisfaction, high quality, and a safe, family-oriented workplace. Progressive specializes in commercial, industrial, and institutional roofing and roof maintenance and excels in addressing the evolving landscape of roofing technologies, materials, and installation complexities. Our carefully selected team of highly skilled, trained, and certified professionals ensures that we meet the unique demands of all roofing systems.
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 March 31, 2025 | ||||||||
| ($ in millions) | Historical TopBuild(1) | Proforma Progressive | Pro Forma Combined | |||||
| Net sales | $ | 5,284 | $ | 438 | $ | 5,722 | ||
| EBITDA, as adjusted(2) | $ | 1,056 | $ | 89 | $ | 1,145 | ||
| Net debt, total(3) | $ | 1,877 | ||||||
| Net debt leverage | 1.6 | x | ||||||
| (1)As disclosed and reconciled in previous quarterly filings with the U.S. Securities and Exchange Commission. | ||||||||
| (2)Earnings before interest, taxes, depreciation, and amortization as defined in our credit agreement. | ||||||||
| (3)TopBuild extended and upsized its Senior Secured Credit Facilities on May 16, 2025. The net proceeds of | ||||||||
| delayed draw of | ||||||||
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
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