Core Insights - TopBuild Corp. has announced the acquisition of Progressive Roofing for $810 million, which is expected to enhance its commercial roofing services and align with its core strengths in the building envelope installation market [1][3][4] Company Overview - TopBuild Corp. is a leading installer and distributor of insulation and related building materials in the U.S. and Canada, with approximately 250 branches [8] - Progressive Roofing, founded in 1978, specializes in commercial roofing installation services and generated $438 million in revenue and $89 million in EBITDA for the trailing 12 months ended March 31, 2025 [2][9] Acquisition Details - The acquisition represents a multiple of approximately 9.1x Progressive's EBITDA and 8.6x post-synergies, considering $5 million in expected synergies [1] - The transaction is expected to close in early Q3 2025, subject to regulatory approvals [5] Market Potential - The commercial roofing services industry is valued at approximately $75 billion and is characterized as highly fragmented and largely non-discretionary [1][4] - Approximately 70% of Progressive's revenue is derived from non-discretionary re-roofing and maintenance services, which are less sensitive to economic cycles [2][4] Strategic Alignment - The acquisition aligns with TopBuild's strategy to expand its offerings and increase exposure to non-cyclical revenue drivers [3][4] - Both companies share a similar branch model and a commitment to technology investments that enhance operational efficiency [4] Financial Impact - The transaction is expected to be immediately accretive to TopBuild's adjusted earnings per share [1] - Pro forma net debt to adjusted EBITDA for TopBuild is approximately 1.6x following the acquisition [5][12]