Installed Building Products Announces the Acquisition of Capital Insulation, LLC

Rhea-AI Summary

Installed Building Products (IBP) has announced the acquisition of Capital Insulation, and CBS & Mirror, (collectively 'Capital') in Houston, Texas. Capital, which serves single-family, multifamily, and commercial markets, primarily installs fiberglass and spray foam insulation for new construction projects. The acquisition adds over $12 million in annual revenue to IBP's existing Houston operations.

This acquisition contributes to IBP's broader expansion strategy, with the company having already acquired over $100 million of annual revenue in 2024. The company maintains a strong pipeline of acquisition opportunities across various geographies, products, and markets.

Positive

• Acquisition adds $12+ million in annual revenue
• Expands presence in Houston market
• Company has acquired $100+ million in annual revenue YTD 2024
• Strong pipeline of future acquisition opportunities

Negative

• None.

Insights

Financial Analyst

The acquisition of Capital Insulation represents a strategic expansion in the Houston market, adding $12 million in annual revenue to IBP's portfolio. This follows a broader acquisition strategy that has already secured $100 million in annual revenue in 2024. The deal strengthens IBP's market position in Texas, particularly in the lucrative Houston construction sector, with exposure to diverse end markets including single-family, multifamily and commercial segments. The company's aggressive M&A approach demonstrates strong execution of its growth strategy, while the diverse service offerings of Capital (fiberglass and spray foam insulation) complement IBP's existing capabilities. This acquisition's valuation metrics aren't disclosed, but IBP's track record of strategic acquisitions suggests disciplined capital allocation focused on market expansion and revenue growth.

Market Research Analyst

This acquisition is strategically positioned in Houston's robust construction market, which has shown resilience despite broader market fluctuations. Capital's diverse end-market exposure across residential and commercial sectors provides IBP with enhanced market penetration and risk diversification. The focus on both new construction and installation services aligns well with Houston's continued development trajectory. The $12 million revenue addition, while modest relative to IBP's size, represents important market share consolidation in a key growth region. The company's broader $100 million in acquisition-driven revenue growth year-to-date signals strong momentum in their expansion strategy and ability to identify and integrate complementary businesses.

Acquisition Adds Over $12 Million of Annual Revenue

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 the acquisition of Capital Insulation, LLC and CBS & Mirror, LLC (collectively “Capital”). Capital is located in Houston, Texas and serves the single-family, multifamily, and commercial end markets. Capital focuses on installation opportunities in new construction projects and primarily installs fiberglass and spray foam insulation.

“Capital adds over $12 million of annual revenue to our business, contributing to our existing presence in the greater Houston building product installation market,” stated Jeff Edwards, Chairman and Chief Executive Officer. “To date in 2024, we have acquired over $100 million of annual revenue. Acquisitions remain a key component of our growth strategy, and we continue to have a strong pipeline of opportunities across multiple geographies, end products, and end markets. On behalf of everyone at Installed Building Products, I want to welcome Capital onto our team.”

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 commercial market, our operations, industry and economic conditions, 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 grow and strengthen our market position, our ability to pursue and integrate value-enhancing acquisitions and the expected amount of acquired revenue, our ability to improve sales and profitability, and expectations for demand for our services and our earnings. 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, general economic and industry conditions; increases in mortgage interest rates and rising home prices; inflation and interest rates; the material price and supply 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, 2023, 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.

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 in all 48 continental states and the District of Columbia from its national network of over 250 branch locations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241216795350/en/

Investor Relations:

614-221-9944

investorrelations@installed.net

Source: Installed Building Products, Inc.

FAQ

How much annual revenue will Capital Insulation add to IBP's business?

Capital Insulation will add over $12 million in annual revenue to IBP's business.

What is the total value of IBP's acquisitions in 2024 so far?

IBP has acquired over $100 million of annual revenue through acquisitions in 2024 to date.

What markets does Capital Insulation serve in Houston?

Capital Insulation serves the single-family, multifamily, and commercial end markets in Houston, Texas.

What types of insulation products does Capital install?

Capital primarily installs fiberglass and spray foam insulation in new construction projects.

How does this acquisition fit into IBP's growth strategy?

The acquisition aligns with IBP's growth strategy, contributing to their existing presence in the Houston market while maintaining a strong pipeline of future acquisition opportunities.