TopBuild Corp. announced it has completed its acquisition of Progressive Roofing from private equity firm Bow River Capital in an all-cash transaction valued at $810 million. The deal, originally announced July 9, closed on schedule in the early third quarter.

The acquisition represents approximately 9.1x Progressive's EBITDA for the trailing 12 months, or 8.6x post-synergies, considering $5 million in anticipated synergies. The transaction was funded through TopBuild's recently expanded credit facility and cash on hand, and is expected to be immediately accretive to adjusted earnings per share.

TopBuild, which operates over 200 installation branches across the U.S., sees the deal as a strategic entry into the commercial roofing market. The total addressable market for commercial roofing installation services is approximately $75 billion and is highly fragmented. The acquisition positions TopBuild to pursue both organic growth and additional M&A opportunities in the sector.

"We are excited to establish a new platform for organic and M&A growth in the large and highly complementary commercial roofing services sector," said Robert Buck, TopBuild's president and CEO. The acquisition enables TopBuild to offer commercial customers comprehensive building envelope solutions while increasing exposure to non-discretionary revenue streams.

Founded in 1978 and based in Phoenix, Ariz., Progressive Roofing is a leader in commercial roofing installation across the United States. The company serves education, technology, industrial, healthcare, and government sectors through 12 branches with more than 1,700 employees. Approximately 70% of Progressive's revenue comes from non-discretionary re-roofing and maintenance work, with 30% from new construction.

TopBuild, headquartered in Daytona Beach, Fla., is a leading installer of insulation and commercial roofing with over 200 installation branches and more than 150 specialty distribution locations across the US and Canada.