TopBuild Acquires Specialty Products and Insulation (SPI) in $1B All-Cash Deal

TopBuild Corp., a leading installer and distributor of insulation, commercial roofing, and related building materials across the United States and Canada, has completed its acquisition of Specialty Products and Insulation (SPI) for $1.0 billion in cash. The deal, which closed on October 7, was financed using cash on hand, including proceeds from TopBuild’s September senior notes issuance. The acquisition does not include SPI’s metal building insulation (MBI) business.

SPI, a major specialty distributor and fabricator of mechanical insulation solutions serving commercial, industrial, and residential markets in North America, reported approximately $700 million in revenue and $75 million in EBITDA for the twelve months ended June 30, 2025. The transaction reflects a multiple of 12.4x SPI’s trailing twelve-month EBITDA, inclusive of a $70 million tax asset. With expected synergies of $35–$40 million within two years, the effective transaction multiple is approximately 8.3x EBITDA. The acquisition is expected to be immediately accretive to TopBuild’s earnings per share.

The SPI acquisition is highly strategic for TopBuild. The addition of SPI’s resources and capabilities further enhances our customer value proposition while its complementary fabrication footprint strengthens and expands our presence across North America. The transaction also drives our growth in non-cyclical revenue streams given that approximately 55% of SPI’s revenue relates to recurring maintenance and repair. We are excited to welcome SPI’s talented and experienced team to TopBuild.

The acquisition of Specialty Products and Insulation (SPI) strengthens TopBuild’s growth strategy and is expected to deliver strong returns. The transaction unites two leading specialty distributors with complementary product portfolios and a strong mix of commercial and industrial end markets, further reinforcing TopBuild’s leadership position in specialty distribution. Approximately 87% of SPI’s revenue is derived from commercial and industrial markets.

The acquisition expands TopBuild’s geographic footprint and enhances its mechanical insulation fabrication capabilities within a highly fragmented industry, creating opportunities to drive operational efficiencies across the Specialty Distribution segment.

In addition, SPI’s revenue profile improves TopBuild’s non-cyclical mix, with roughly 55% of SPI’s revenue generated from recurring maintenance and repair activities.

TopBuild expects the acquisition to deliver strong returns on invested capital, supported by anticipated annual run-rate cost synergies of $35–$40 million within two years. M&A remains a core strength for TopBuild, which has completed 45 acquisitions since its 2015 spin-off, achieving an 18.2% return on invested capital as of December 31, 2024.

Source: TopBuild