TopBuild Acquires Progressive Services for $810mln

TopBuild Corp. has agreed to acquire Progressive Services, Inc. from Bow River Asset Management LLC for $810 million. The transaction will be funded through a credit facility and cash on hand. Progressive Services reported $438 million in revenue and $89 million in EBITDA for the period ending March 31, 2025. The acquisition is expected to be completed in Q3 2025 and be immediately accretive to adjusted earnings per share.

TopBuild Corp. (NYSE: BLD) has announced its intention to acquire Progressive Services, Inc. from Bow River Asset Management LLC for a total of $810 million. The transaction is expected to be funded through a combination of TopBuild's recently expanded credit facility and cash on hand. The acquisition is anticipated to close in the third quarter of 2025, subject to regulatory approvals and customary closing conditions.

Progressive Services, Inc., a portfolio company of Bow River Capital, reported revenue of $438 million and EBITDA of $89 million for the period ending March 31, 2025. The acquisition is expected to be immediately accretive to TopBuild's adjusted earnings per share.

TopBuild Corp., headquartered in Daytona Beach, Florida, is a leading installer and specialty distributor of insulation and related building material products to the construction industry in the United States and Canada. The acquisition of Progressive Services will enable TopBuild to expand its building envelope installation solutions to include a comprehensive suite of commercial roofing services. This move aligns with TopBuild's core strengths and positions the company to capitalize on the significant growth potential in the highly fragmented and largely non-discretionary commercial roofing services industry, valued at approximately $75 billion.

The acquisition will also increase TopBuild's exposure to non-cyclical and non-discretionary revenue drivers, such as re-roofing and maintenance services, which account for approximately 70% of Progressive Services' revenue. This acquisition is expected to serve as a significant growth platform for TopBuild, both organically and through future mergers and acquisitions (M&A).

The transaction is expected to be immediately accretive to TopBuild's adjusted earnings per share, and the pro forma net debt to adjusted EBITDA ratio for the first quarter of 2025 is projected to be approximately 1.6x. TopBuild has engaged RBC as its financial advisor and Jones Day as its legal counsel for this transaction.

A conference call to discuss the transaction is scheduled for July 8, 2025, at 8:30 a.m. Eastern Time. The live call can be accessed by dialing (877) 407-9037, and a simultaneous webcast will be available on TopBuild's website at www.topbuild.com.

References:
[1] https://www.globenewswire.com/news-release/2025/07/08/3111573/36657/en/TopBuild-to-Acquire-Progressive-Roofing-in-All-Cash-Transaction-Valued-at-810-Million-Creating-a-New-Growth-Platform.html
[2] https://www.tradingview.com/news/reuters.com,2025-07-08:newsml_GNX2JMXmK:0-topbuild-to-acquire-progressive-roofing-in-all-cash-transaction-valued-at-810-million-creating-a-new-growth-platform/