By Anshuman Tripathy (Reuters) -TopBuild Corp said on Wednesday it has acquired Specialty Products and Insulation (SPI) for $1 billion in cash, about a year after the two building materials makers terminated an initial agreement over antitrust concerns. Shares of the company rose more than 7% in morning trade. The transaction does not include SPI’s […]
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Roofing material firm TopBuild buys rival SPI after antitrust delay
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By Anshuman Tripathy
(Reuters) -TopBuild Corp said on Wednesday it has acquired Specialty Products and Insulation (SPI) for $1 billion in cash, about a year after the two building materials makers terminated an initial agreement over antitrust concerns.
Shares of the company rose more than 7% in morning trade.
The transaction does not include SPI’s metal building insulation business – an area of contention that led to the demise of their previous agreement last year.
TopBuild first agreed to acquire SPI in 2023 for $960 million, which was terminated after the Department of Justice raised concerns over the deal harming competition.
The deal comes as the U.S. building products industry, which is fairly protected from tariffs due to local sourcing, undergoes rapid consolidation to capture demand for new homes and repair services.
Dealmaking in the U.S. has also received an impetus from the Trump administration, which has dialed back the scrutiny seen under former President Joe Biden’s government.
Earlier this year, Home Depot’s unit acquired specialty building products distributor GMS for about $4.3 billion. QXO clinched an $11 billion deal for Beacon Roofing Supply in March, while Lowe’s purchased Artisan Design for $1.33 billion in April.
Loop Capital Markets analyst Jeffrey Stevenson said the deal was a “home run” for TopBuild as it helps the company diversify its revenue streams, and increases its exposure to commercial and industrial customers.
It also “nicely complements its 2021 mechanical insulation acquisition of Distribution International,” Stevenson added.
TopBuild, which closed its acquisition of SPI on Tuesday, expects $35 million to $40 million in annual cost synergies within two years.
Charlotte, North Carolina-based SPI, which employs about 1,000 people across 90 branches, makes mechanical insulation solutions for the commercial, industrial and residential end markets in North America.
Guggenheim Securities and J.P. Morgan Securities were financial advisers to TopBuild, while Piper Sandler advised SPI.
(Reporting by Anshuman Tripathy in Bengaluru; Editing by Leroy Leo)