Installed Building Products Announces the Acquisition of Wholesale Insulation Supply, Inc. DBA Insulation Supplies

Rhea-AI Summary

Installed Building Products (IBP) has announced the acquisition of Wholesale Insulation Supply, Inc., doing business as Insulation Supplies. This strategic move adds over $22 million in annual revenue to IBP's portfolio. Insulation Supplies, established in 1986 and headquartered near Minneapolis, Minnesota, serves residential and commercial markets throughout Minnesota and the upper Midwest.

The acquisition expands IBP's geographic presence and enhances its ability to meet customer needs in the region. Insulation Supplies specializes in distributing fiberglass insulation, spray foam insulation, cellulose insulation, and related accessories and machinery. This acquisition brings IBP's total acquired annual revenue in 2024 to over $73 million, highlighting the company's commitment to growth through strategic acquisitions.

Positive

• Acquisition adds over $22 million in annual revenue
• Expands geographic presence in Minnesota and upper Midwest
• Enhances ability to serve insulation customers in the region
• Total acquired annual revenue in 2024 reaches over $73 million
• Strengthens product offerings in residential and commercial insulation markets

Negative

• None.

Insights

Financial Analyst

IBP's acquisition of Insulation Supplies is a strategic move that significantly expands their market presence in the upper Midwest. The $22 million in annual revenue from this acquisition is substantial, representing about 1.5% of IBP's total revenue based on their 2023 figures. This deal, combined with other acquisitions in 2024, has already added over $73 million in annual revenue, showcasing IBP's aggressive growth strategy through M&A. The acquisition not only increases IBP's geographic footprint but also enhances their product offering in both residential and commercial insulation markets. Investors should note that this expansion could lead to improved economies of scale, potentially boosting profit margins. However, it's important to monitor integration costs and how effectively IBP can leverage Insulation Supplies' existing customer base and operational efficiencies.

Market Research Analyst

This acquisition aligns well with the growing demand for energy-efficient building solutions. The insulation market is projected to expand significantly due to stricter building codes and increased focus on sustainability. By acquiring Insulation Supplies, IBP gains access to a diverse product portfolio including fiberglass, spray foam and cellulose insulation, positioning them to capitalize on various market segments. The strategic location near Minneapolis provides IBP with a strong foothold in a major metropolitan area, potentially leading to increased market share. Investors should consider the long-term growth potential this acquisition offers, especially given the Biden administration's push for energy-efficient infrastructure. However, it's important to watch for any potential supply chain disruptions or raw material price fluctuations that could impact margins in the insulation industry.

Acquisition Adds Over $22 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 Wholesale Insulation Supply, Inc. doing business as Insulation Supplies.

Insulation Supplies was established in 1986 and is headquartered in New Hope, Minnesota, near Minneapolis. Insulation Supplies generates over $22 million of annual revenue throughout Minnesota and the upper Midwest. As a specialty distributor focused on residential and commercial end-markets, Insulation Supplies sells fiberglass insulation, spray foam insulation, cellulose insulation, and related insulation accessories and machinery.

"Insulation Supplies has successfully grown its business by providing exceptional service to its customers and we are excited to complete another strategic acquisition. The acquisition expands our geographic presence and enhances our ability to efficiently meet the needs of insulation customers throughout the upper Midwest,” stated Jeff Edwards, Chairman and Chief Executive Officer.

“To date in 2024, we have acquired over $73 million of annual revenue. 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 Insulation Supplies onto our team,” concluded Mr. Edwards.

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/20241007972123/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 Wholesale Insulation Supply, Inc., doing business as Insulation Supplies.

How much annual revenue does Insulation Supplies generate?

Insulation Supplies generates over $22 million in annual revenue.

Where is Insulation Supplies headquartered?

Insulation Supplies is headquartered in New Hope, Minnesota, near Minneapolis.

What products does Insulation Supplies distribute?

Insulation Supplies distributes fiberglass insulation, spray foam insulation, cellulose insulation, and related insulation accessories and machinery.

How much total annual revenue has IBP acquired in 2024?

To date in 2024, IBP has acquired over $73 million of annual revenue through acquisitions.