Installed Building Products Acquires Insulation Contractors/Magellan Insulation

Rhea-AI Summary

Installed Building Products (IBP) has acquired Insulation Contractors/Magellan Insulation (Icon), a Kent, Washington-based firm. This acquisition, valued at approximately $26 million in annual revenue, enhances IBP's presence in commercial and multi-family markets in Washington and Oregon. So far in 2020, IBP has secured around $84 million in annual revenues through acquisitions, which are central to its growth strategy. The company anticipates further expansion opportunities across various geographies and product lines.

Positive

• Acquisition of Icon adds approximately $26 million in annual revenue.
• Strengthens IBP's market presence in Washington and Oregon.
• IBP's overall acquisition strategy has generated $84 million in revenue in 2020.

Negative

• None.

COLUMBUS, Ohio--(BUSINESS WIRE)--Installed Building Products, Inc. (the “Company” or “IBP”) (NYSE: IBP), an industry-leading installer of insulation and complementary building products, today announced it has acquired Insulation Contractors/Magellan Insulation, known within its local markets as Icon. Founded in 1989, Icon is headquartered in Kent, Washington, and provides insulation, waterproofing, and firestopping installation services to commercial and multi-family customers throughout Washington and Oregon.

“With total annual revenue of approximately $26 million, Icon expands our presence with commercial and multi-family customers in Washington and Oregon. In addition, the mix of both commercial and multi-family customers aligns well with the current growth we are experiencing across our nationwide footprint,” stated Jeff Edwards, Chairman and Chief Executive Officer. “To date in 2020, we have acquired approximately $84 million of annual revenues. Acquisitions remain a key component of our growth strategy and we continue to have a robust pipeline of acquisition opportunities across multiple geographies, products and end markets. On behalf of everyone at Installed Building Products, I’d like to welcome Insulation Contractors/Magellan Insulation to our company.”

About Installed Building Products

Installed Building Products, Inc. is one of the nation's largest new residential insulation installers and is a diversified installer of complementary building products, including waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors and other products for residential and commercial builders located in the continental United States. The Company manages all aspects of the installation process for its customers, from direct purchase and receipt of materials from national manufacturers to its timely supply of materials to job sites and quality installation. The Company offers its portfolio of services for new and existing single-family and multi-family residential and commercial building projects from its national network of over 180 branch locations.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws, including with respect to the housing market and the economy, our financial and business model, the demand for our services and product offerings,  expansion of our national footprint and end markets, diversification of our products, our ability to capitalize on the new home and commercial construction recovery, our ability to grow and strengthen our market position, our ability to pursue and integrate value-enhancing acquisitions, our ability to improve sales and profitability,  and expectations for demand for our services and our earnings in 2020. Forward-looking statements may generally be identified by the use of words such as "anticipate," "believe," "expect," "intends," "plan," and "will" or, in each case, their negative, or other variations or comparable terminology.  These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Any forward-looking statements that we make herein and in any future reports and statements are not guarantees of future performance, and actual results may differ materially from those expressed in or suggested by such forward-looking statements as a result of various factors, including, without limitation, the duration, effect and severity of the COVID-19 crisis; the adverse impact of the COVID-19 crisis on our business and financial results, the economy and the markets we serve; general economic and industry conditions, the material price environment; the timing of increases in our selling prices, and the factors discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, as the same may be updated from time to time in our subsequent filings with the Securities and Exchange Commission.  Any forward-looking statement made by the Company in this press release speaks only as of the date hereof. New risks and uncertainties arise from time to time, and it is impossible for the Company to predict these events or how they may affect it. The Company has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws.