Core Viewpoint - TopBuild Corp. has agreed to acquire Progressive Roofing for $810 million in cash, which is expected to enhance its strategic growth plan and add to its adjusted earnings per share [1][3]. Company Overview - Progressive Roofing, founded in 1978 and based in Phoenix, operates through 12 branches and provides commercial roofing services, including re-roofing, maintenance, and new construction [3][4]. - The company generated $438 million in revenues and $89 million in EBITDA for the 12 months ending March 31, 2025, with 70% of revenues from non-discretionary services [3]. Strategic Implications - The acquisition will allow TopBuild to enter the commercial roofing segment, leveraging Progressive Roofing's established business model and technology investments [4][5]. - The commercial roofing industry has a total addressable market of approximately $75 billion and remains highly fragmented, presenting growth opportunities through organic expansion and M&A activity [5]. Financial Metrics - The deal values Progressive Roofing at approximately 9.1 times its EBITDA, which reduces to 8.6 times when accounting for expected synergies of $5 million [1]. - TopBuild's stock has increased by 20.1% over the past three months, outperforming the industry and the S&P 500 [6]. Valuation - TopBuild's stock is currently trading at a forward 12-month price-to-earnings ratio of 17.16X, indicating a premium compared to industry peers [8].