TopBuild Terminates Acquisition Agreement

By Bobby Samwell • Tuesday, April 23 06:08 • Permanent Link

TopBuild Corp. (NYSE:BLD) has announced the mutual termination of its agreement to acquire Specialty Products and Insulation ("SPI") that was initially revealed on July 27, 2023. The termination was effective as of April 22, 2024, and as per the terms of the purchase agreement, TopBuild paid a termination fee of $23 million.

Robert Buck, President and CEO of TopBuild, emphasized the company's disciplined approach to mergers and acquisitions (M&A) and its commitment to driving shareholder value. Despite the termination of the SPI acquisition, TopBuild remains focused on pursuing growth opportunities, both organically and through acquisitions.

TopBuild's total addressable market has been highlighted as exceeding $18 billion, spanning across the fragmented residential, commercial, and industrial and mechanical insulation end markets. The company asserts its intention to leverage its strong free cash flow to pursue acquisitions with the aim of enhancing shareholder value.

In light of the terminated agreement, TopBuild has withdrawn its Hart-Scott Rodino filings. Despite the setback with the SPI acquisition, the company remains optimistic about its M&A prospects, citing a robust pipeline of opportunities and a successful track record in integrating businesses.

TopBuild Corp. is a prominent installer and specialty distributor of insulation and related building material products in the United States and Canada. Its Installation segment comprises approximately 240 branches, providing insulation installation services nationwide, while its Specialty Distribution business encompasses around 170 branches, catering to the distribution of building and mechanical insulation, insulation accessories, and other building product materials.

For more information about TopBuild, visit their website at www.topbuild.com. The market has reacted to these announcements by moving the company's shares 0.1% to a price of $384.66. For more information, read the company's full 8-K submission here.

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