TopBuild Corp., an installer of insulation and commercial roofing and a specialty distributor of insulation and related building material products to the construction industry in the United States and Canada, announced that it successfully acquired Specialty Products and Insulation (SPI), a specialty distributor and fabricator of mechanical insulation solutions for the commercial, industrial and residential end markets in North America, for $1 billion in cash. 

The acquisition closed on Oct. 7 and was funded with cash on hand, including proceeds from the September senior notes issuance. The acquisition excludes SPI’s metal building insulation (“MBI”) business.

According to Reuters, the transaction is taking place roughly a year after the two building materials makers terminated an initial agreement over antitrust concerns. The exclusion of the MBI business was a source of contention that led to the termination of the previous agreement. In the previous deal, TopBuild was to acquire SPI for $960 million, but the Department of Justice raised concerns over it harming competition.

SPI generated approximately $700 million in revenue and $75 million in earnings before interest, taxes, depreciation and amortization (EBITDA) for the trailing 12 months ended June 30, 2025. The transaction represents approximately 12.4x SPI’s EBITDA for the trailing twelve months ended June 30, 2025, 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," said Robert Buck, president and CEO of 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 brings together two specialty distributors with a commercial and industrial end market mix and complementary product offerings. It reinforces TopBuild’s leadership position in specialty distribution to drive further innovation and even better meet customers’ needs. Approximately 87% of SPI’s revenue is related to commercial and industrial end markets.

TopBuild, has successfully completed 45 acquisitions since the spin-off in 2015 and is generating an 18.2% return on invested capital as of Dec. 31, 2024. Among them was establishing a roofing platform with the acquisition of Progressive Roofing.

“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," said Ray Sears, president and CEO of SPI. "Both companies have similar corporate cultures with an emphasis on safety, respect, and a continued drive to improve.”

Based in Charlotte, N.C., SPI employs approximately 1,000 people across 90 branches and serves a broad base of customers across North America.