Installed Building Products Announces the Acquisition of Euroview Enterprises, LLC

Rhea-AI Summary

Installed Building Products (NYSE: IBP) has announced the acquisition of Euroview Enterprises, , Contract Mirror and Supply Co., and CLM Solutions, (collectively "Euroview"). Established in 1961, Euroview is headquartered in Illinois with an additional location in Minnesota, focusing on new single-family and multi-family construction projects. The acquisition adds approximately $20 million of annual revenue to IBP's business, reinforcing its presence in the Midwest region and increasing access to Illinois and Minnesota markets.

Euroview's primary revenue sources are shower doors, shelving, and mirrors. IBP's CEO, Jeff Edwards, emphasized that acquisitions remain a key component of their growth strategy, with a robust pipeline of opportunities across multiple geographies, products, and end markets.

Positive

• Acquisition adds approximately $20 million in annual revenue
• Expands IBP's presence in the Midwest region
• Increases access to Illinois and Minnesota markets
• Diversifies product offerings with shower doors, shelving, and mirrors
• Aligns with IBP's growth strategy through acquisitions

Negative

• None.

Insights

Financial Analyst

The acquisition of Euroview Enterprises by Installed Building Products (IBP) is a strategic move that bolsters IBP's market position and revenue stream. With Euroview adding approximately $20 million in annual revenue, this represents a significant boost to IBP's top line. To put this in perspective, IBP reported revenue of $2.5 billion for 2022, so this acquisition could potentially increase their annual revenue by about 0.8%.

From a financial standpoint, this acquisition aligns with IBP's growth strategy through M&A activities. The company's focus on expanding its geographical footprint and product offerings through acquisitions has been a key driver of its growth. This particular deal strengthens IBP's presence in the Midwest, specifically in the lucrative Illinois and Minnesota markets.

Investors should note that while the revenue addition is modest in relation to IBP's overall size, the strategic value lies in the expansion of IBP's product portfolio. Euroview's specialization in shower doors, shelving and mirrors complements IBP's existing offerings in insulation and other building products. This diversification can potentially lead to cross-selling opportunities and improved margins.

However, it's important to consider the integration costs and potential synergies. The success of this acquisition will depend on how efficiently IBP can integrate Euroview's operations and leverage its established presence in the Midwest. Additionally, investors should monitor future earnings reports to assess the actual impact of this acquisition on IBP's financial performance and whether it meets or exceeds the expected $20 million revenue contribution.

Market Research Analyst

The acquisition of Euroview Enterprises by Installed Building Products (IBP) is a strategic move that aligns with current market trends in the building products industry. The focus on shower doors, shelving and mirrors is particularly noteworthy, as these products are essential in both new construction and renovation projects, which have seen robust demand in recent years.

The expansion into the Illinois and Minnesota markets is significant from a geographical perspective. These states have shown resilience in their housing markets, with Illinois being the 6th most populous state and Minnesota showing steady growth in residential construction. This move allows IBP to tap into these markets more effectively, potentially capturing a larger share of both single-family and multi-family construction projects.

It's worth noting that Euroview's established presence since 1961 brings with it valuable customer relationships and market knowledge. This could accelerate IBP's penetration into these markets compared to organic growth strategies. Moreover, the inclusion of a separate entity focusing on commercial projects provides IBP with diversification benefits, potentially buffering against fluctuations in the residential construction sector.

However, investors should be aware of potential challenges. The building products industry is cyclical and sensitive to economic conditions, interest rates and housing market trends. While current demand remains strong, any future downturn in the housing market could impact the expected returns from this acquisition. Additionally, the integration of Euroview's operations and culture into IBP's existing structure will be important for realizing the full potential of this acquisition.

Acquisition Adds Approximately $20 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 Euroview Enterprises, LLC, Contract Mirror and Supply Co., and CLM Solutions, LLC (collectively “Euroview”). Established in 1961, Euroview is headquartered in Elk Grove Village, Illinois, with an additional location in Burnsville, Minnesota. Euroview focuses on new single-family and multi-family construction projects throughout Illinois and Minnesota with a separate, smaller entity that focuses on commercial projects. Shower doors, shelving, and mirrors make up the vast majority of Euroview’s revenue.

"Euroview adds approximately $20 million of annual revenue to our business, reinforcing our presence in the Midwest region while increasing our access to sizable Illinois and Minnesota markets,” stated Jeff Edwards, Chairman and Chief Executive Officer. “Acquisitions remain a key component of our growth strategy and we continue to have a robust pipeline of opportunities across multiple geographies, products, and end markets. On behalf of everyone at Installed Building Products, I want to welcome Euroview 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, payment of dividends, 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; the risk that the Company may reduce, suspend or eliminate dividend payments in the future; 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. In addition, any future declaration of dividends will be subject to the final determination of our Board of Directors. 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/20240729288745/en/

Investor Relations:

614-221-9944

investorrelations@installed.net

Source: Installed Building Products, Inc.

FAQ

What company did Installed Building Products (IBP) acquire?

Installed Building Products (IBP) acquired Euroview Enterprises, , Contract Mirror and Supply Co., and CLM Solutions, , collectively referred to as "Euroview".

How much annual revenue does the Euroview acquisition add to IBP?

The Euroview acquisition adds approximately $20 million of annual revenue to Installed Building Products' business.

What are the main products offered by Euroview?

Euroview's main products are shower doors, shelving, and mirrors, which make up the vast majority of its revenue.

Where is Euroview headquartered and what markets does it serve?

Euroview is headquartered in Elk Grove Village, Illinois, with an additional location in Burnsville, Minnesota. It serves markets throughout Illinois and Minnesota, focusing on new single-family and multi-family construction projects.

How does the Euroview acquisition align with IBP's growth strategy?

The Euroview acquisition aligns with IBP's growth strategy by reinforcing its presence in the Midwest region, increasing access to Illinois and Minnesota markets, and expanding its product offerings. IBP's CEO stated that acquisitions remain a key component of their growth strategy.