Summary of TopBuild's Acquisition of Specialty Products and Insulation (SPI) Company and Industry - **Company**: TopBuild (NYSE: BLD) - **Acquisition Target**: Specialty Products and Insulation (SPI) - **Industry**: Mechanical insulation solutions for commercial, industrial, and residential markets Core Points and Arguments - **Acquisition Details**: TopBuild has completed the acquisition of SPI in an all-cash transaction valued at **$1 billion** [1][2][4] - **SPI Overview**: SPI is a leading specialty distributor and fabricator of mechanical insulation solutions, operating **90 branches** and employing approximately **1,000 employees** across North America [4][5] - **Strategic Rationale**: The acquisition is aimed at expanding TopBuild's mechanical insulation business and enhancing its installation solutions across various sectors, including data centers, energy, and industrial manufacturing [5][6] - **Geographic Expansion**: The acquisition allows TopBuild to enter key markets, such as Florida, where it previously had no mechanical insulation distribution presence [7] - **Revenue Resilience**: More than **50%** of SPI's sales are driven by maintenance, repair, and replacement activities, improving TopBuild's revenue resiliency [8][12] - **Synergy Expectations**: TopBuild anticipates achieving **$35 to $40 million** in annual run-rate synergies within two years, which would reduce the acquisition multiple to **8.3 times EBITDA** post-synergies [10][11] - **Financial Performance**: SPI generated approximately **$700 million** in revenue and **$75 million** in EBITDA for the trailing twelve months ended June 30, 2025, representing a margin of **10.7%** [10] - **Pro Forma Revenue**: Following the acquisition, TopBuild's total pro forma revenue is projected to be **$6.4 billion**, with specialty distribution (including SPI) accounting for **43%** of annual revenue [11] Other Important Information - **M&A Expertise**: TopBuild has completed **45 acquisitions** in the last 10 years, showcasing its strong track record in integrating companies and realizing synergies [9] - **Non-GAAP Measures**: The conference call included discussions of non-GAAP financial measures, which are reconciled to GAAP measures in the company's press release [2][3] - **Leadership and Culture**: Both TopBuild and SPI share similar corporate values, emphasizing people, safety, integrity, and execution, which is expected to facilitate a smooth integration [5]