Building Materials/Construction

TopBuild Buys Fellow Insulation Distributor SPI for $1B

SPI had revenue of about $700 million for the 12 months ended June 30 and represents another major expansion for TopBuild after it acquired Progressive Roofing in July.

It’s shaping up to be a transformative expansion year for TopBuild.

The installer and distributor of insulation and commercial roofing products announced Oct. 8 that it acquired Specialty Products and Insulation (SPI) — a specialty distributor and fabricator of mechanical insulation solutions for the commercial, industrial and residential end markets — for $1.0 billion in cash. The acquisition closed on Oct. 7 and was funded with cash on hand, including proceeds from senior notes issuance. The acquisition excludes SPI’s metal building insulation business.

This is the second major deal of 2025 for TopBuild after it acquired Progressive Roofing in July for $810 million.

Based in Charlotte, NC, SPI employs approximately 1,000 people across 90 branches and serves a broad base of customers across North America. Meanwhile, TopBuild‘s Specialty Distribution network encompasses more than 150 branches across the United States and Canada. TopBuild was No. 15 on MDM’s 2025 Top Distributors List for Building Materials/Construction based on the company’s $2.3 billion in 2024 revenue from its Specialty Distribution unit.

SPI generated approximately $700 million in revenue and $75 million in EBITDA for the trailing 12 months ended June 30. The transaction represents approximately 12.4x SPI’s EBITDA for the trailing 12 months ended June 30, inclusive of a $70 million tax asset. Considering synergies of $35-$40 million within two years, the transaction multiple is 8.3x EBITDA. The transaction is immediately accretive to 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,” TopBuild President and CEO Robert Buck said in a news release. “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.”

Ray Sears, President and Chief Executive Officer of SPI, added, “We believe TopBuild is the best strategic owner for our business, better positioning the combined organization to provide customers with innovative and high-quality solutions. Both companies have similar corporate cultures with an emphasis on safety, respect and a continued drive to improve.”