Installed Building Products Announces the Acquisition of Tatum Insulation III, LLC

Rhea-AI Summary

Installed Building Products (NYSE: IBP) has announced the acquisition of Tatum Insulation III, , a Wilmington, North Carolina-based company that contributes over $17 million in annual revenue. Tatum specializes in installing fiberglass insulation, shower doors, shelving, mirrors, and other interior building products, serving both new residential and commercial markets throughout North Carolina. This acquisition is part of IBP's broader growth strategy, with the company having acquired businesses representing over $90 million in annual revenue in 2024 to date.

Positive

• Acquisition adds $17 million in annual revenue
• Expands geographic presence in North Carolina
• Diversifies customer base across single-family, multi-family, and commercial markets
• Part of successful acquisition strategy totaling $90 million in revenue YTD

Negative

• None.

Insights

Financial Analyst

The acquisition of Tatum Insulation III represents a strategic expansion for IBP in the North Carolina market. With $17 million in annual revenue contribution, this deal strengthens IBP's regional footprint and diversifies its product installation portfolio. More notably, IBP has already acquired $90 million in annual revenue through acquisitions in 2024, demonstrating aggressive inorganic growth execution.

The deal aligns with IBP's vertical integration strategy, expanding both geographic reach and service offerings across residential and commercial segments. The acquisition provides cross-selling opportunities through Tatum's diverse product installation capabilities, including fiberglass insulation, shower doors, shelving and mirrors. This multi-product approach should help improve operational efficiency and market penetration in the North Carolina region.

Acquisition Adds Over $17 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 Tatum Insulation III, LLC (“Tatum”). Tatum is headquartered just outside of Wilmington, North Carolina, and serves new residential and new commercial end markets throughout the state. Tatum installs multiple building products including fiberglass insulation, shower doors, shelving, mirrors, and other products installed in the interior of homes and buildings.

“Tatum adds over $17 million of annual revenue to our business, giving us increased geographic exposure and the opportunity to deepen our presence with single-family, multi-family, and commercial customers throughout North Carolina,” stated Jeff Edwards, Chairman and Chief Executive Officer. “To date in 2024, we have acquired over $90 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, products, and end markets. On behalf of everyone at Installed Building Products, I want to welcome Tatum 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/20241112503221/en/

Investor Relations:

614-221-9944

investorrelations@installed.net

Source: Installed Building Products, Inc.

FAQ

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

Tatum Insulation will add over $17 million in annual revenue to IBP's business.

What products does Tatum Insulation install for IBP?

Tatum installs fiberglass insulation, shower doors, shelving, mirrors, and other interior building products.

How much total revenue has IBP acquired through acquisitions in 2024?

IBP has acquired businesses representing over $90 million in annual revenue in 2024 to date.

What markets does Tatum Insulation serve for IBP in North Carolina?

Tatum serves new residential and new commercial end markets throughout North Carolina.