Core Viewpoint - TopBuild Corp. has acquired Specialty Products and Insulation (SPI) for $1.0 billion, enhancing its leadership in specialty distribution and expanding its geographic footprint and mechanical insulation capabilities [2][3][4]. Financial Summary - SPI generated approximately $700 million in revenue and $75 million in EBITDA for the trailing twelve months ended June 30, 2025, with the acquisition representing a transaction multiple of approximately 12.4x EBITDA [3]. - Considering expected synergies of $35-$40 million within two years, the adjusted transaction multiple is 8.3x EBITDA [3]. - The acquisition is immediately accretive to TopBuild's earnings per share [3]. Strategic Implications - The acquisition strengthens TopBuild's presence in commercial and industrial end markets, with approximately 87% of SPI's revenue related to these sectors [6]. - It improves TopBuild's non-cyclical revenue mix, as about 55% of SPI's revenue comes from recurring maintenance and repair [6]. - TopBuild expects to realize annual run-rate cost synergies of approximately $35-$40 million within two years, reinforcing its core M&A strength [6]. Operational Insights - SPI operates approximately 90 branches and employs around 1,000 people across North America, serving a diverse customer base [4]. - The acquisition enhances TopBuild's customer value proposition and operational efficiencies in a highly fragmented industry [6]. Company Background - TopBuild Corp. is a leading installer of insulation and commercial roofing, as well as a specialty distributor of insulation and related building materials in the U.S. and Canada [9]. - The company has a proven track record of successful acquisitions, having completed 45 since its spin-off in 2015, generating an 18.2% return on invested capital as of December 31, 2024 [6].