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TopBuild (BLD) Is Set to Acquire Pest Control Insulation
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TopBuild Corp. (BLD - Free Report) has entered into an agreement to acquire Pest Control Insulation company, a specialty distributor focusing on blended, customized insulation products, accessories and equipment.
Pest Control Insulation’s customer base, comprising several blue-chip pest control companies and diversified product offerings, will strengthen the product portfolio and market reach of BLD. Furthermore, Pest Control Insulation’s 2023 revenues of about $24 million are encouraging, showcasing an uptick in TopBuild’s growth prospects for the upcoming period.
The acquisition is expected to close within the next 30 days since the news release. Post the completion of this strategic buyout, the acquired company will function under TopBuild’s Specialty Distribution segment.
BLD is optimistic about this strategic move, as it believes joining hands with Pest Control Insulation’s team will ensure unhindered growth of the specialty distribution business across the country.
Inorganic Moves Bode Well
Acquisitions are an important part of TopBuild’s growth strategy to supplement organic growth and expand access to additional markets and products.
In October 2023, BLD acquired Panhandle Insulation, a residential installer that generates approximately $5.3 million in annual revenues. On Jul 17, 2023, it acquired the assets of Best Insulation for $95.0 million in cash. This buyout enhanced the company’s presence in Texas, Arizona, Tennessee and Florida markets. Also, on Jul 10, 2023, TopBuild acquired the residential insulation installer business, Rocky Mountain, for $7.2 million to increase its presence in the Colorado market.
On Jul 26, 2023, BLD entered into a definitive agreement to acquire Specialty Products and Insulation (“SPI”) for a total valuation of $960 million, which is expected to be completed by 2024. Subject to customary closing conditions, upon completion, SPI’s portfolio of 85 branches across the United States and four branches in Canada will enhance BLD’s market reach.
Price Performance & Growth Prospect
Shares of this installer and distributor of insulation and other building products have increased 43.1% in the past three months, outperforming the Zacks Building Products - Miscellaneous industry’s 27.5% growth. The growth can be attributable to the company’s strategic focus on multifamily and commercial work, along with an emphasis on operational excellence.
Image Source: Zacks Investment Research
Meanwhile, earnings estimates for this Zacks Rank #2 (Buy) company for 2024 have moved north to $20.70 per share from $20.62 per share in the past seven days, indicating 5.3% growth from a year ago. Furthermore, earnings estimates for fourth-quarter 2023 suggest a 4.6% increase from the prior-year levels. BLD has a trailing four-quarter earnings surprise of 14.3%, on average. Such an uptrend depicts analysts’ optimism about the stock’s growth potential.
Other Key Picks
Here are some other top-ranked stocks from the Construction sector.
AYI delivered a trailing four-quarter earnings surprise of 13.9%, on average. The stock has gained 25.3% in the past year. The Zacks Consensus Estimate for AYI’s fiscal 2024 sales indicates a decline of 2.4%, while earnings per share (EPS) indicates an improvement of 5.3% from a year ago.
Armstrong World Industries, Inc. (AWI - Free Report) presently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 7.9%, on average. Shares of AWI have increased 25.7% in the past year.
The Zacks Consensus Estimate for AWI’s 2024 sales and EPS indicates a rise of 1.4% and 7.5%, respectively, from the prior-year levels.
Installed Building Products, Inc. (IBP - Free Report) currently sports a Zacks Rank of 1. IBP delivered a trailing four-quarter earnings surprise of 7.3%, on average. The stock has surged 74.2% in the past year.
The Zacks Consensus Estimate for IBP’s 2024 sales and EPS indicates a growth of 6.4% and 7.2%, respectively, from the prior-year levels.
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TopBuild (BLD) Is Set to Acquire Pest Control Insulation
TopBuild Corp. (BLD - Free Report) has entered into an agreement to acquire Pest Control Insulation company, a specialty distributor focusing on blended, customized insulation products, accessories and equipment.
Pest Control Insulation’s customer base, comprising several blue-chip pest control companies and diversified product offerings, will strengthen the product portfolio and market reach of BLD. Furthermore, Pest Control Insulation’s 2023 revenues of about $24 million are encouraging, showcasing an uptick in TopBuild’s growth prospects for the upcoming period.
The acquisition is expected to close within the next 30 days since the news release. Post the completion of this strategic buyout, the acquired company will function under TopBuild’s Specialty Distribution segment.
BLD is optimistic about this strategic move, as it believes joining hands with Pest Control Insulation’s team will ensure unhindered growth of the specialty distribution business across the country.
Inorganic Moves Bode Well
Acquisitions are an important part of TopBuild’s growth strategy to supplement organic growth and expand access to additional markets and products.
In October 2023, BLD acquired Panhandle Insulation, a residential installer that generates approximately $5.3 million in annual revenues. On Jul 17, 2023, it acquired the assets of Best Insulation for $95.0 million in cash. This buyout enhanced the company’s presence in Texas, Arizona, Tennessee and Florida markets. Also, on Jul 10, 2023, TopBuild acquired the residential insulation installer business, Rocky Mountain, for $7.2 million to increase its presence in the Colorado market.
On Jul 26, 2023, BLD entered into a definitive agreement to acquire Specialty Products and Insulation (“SPI”) for a total valuation of $960 million, which is expected to be completed by 2024. Subject to customary closing conditions, upon completion, SPI’s portfolio of 85 branches across the United States and four branches in Canada will enhance BLD’s market reach.
Price Performance & Growth Prospect
Shares of this installer and distributor of insulation and other building products have increased 43.1% in the past three months, outperforming the Zacks Building Products - Miscellaneous industry’s 27.5% growth. The growth can be attributable to the company’s strategic focus on multifamily and commercial work, along with an emphasis on operational excellence.
Image Source: Zacks Investment Research
Meanwhile, earnings estimates for this Zacks Rank #2 (Buy) company for 2024 have moved north to $20.70 per share from $20.62 per share in the past seven days, indicating 5.3% growth from a year ago. Furthermore, earnings estimates for fourth-quarter 2023 suggest a 4.6% increase from the prior-year levels. BLD has a trailing four-quarter earnings surprise of 14.3%, on average. Such an uptrend depicts analysts’ optimism about the stock’s growth potential.
Other Key Picks
Here are some other top-ranked stocks from the Construction sector.
Acuity Brands, Inc. (AYI - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AYI delivered a trailing four-quarter earnings surprise of 13.9%, on average. The stock has gained 25.3% in the past year. The Zacks Consensus Estimate for AYI’s fiscal 2024 sales indicates a decline of 2.4%, while earnings per share (EPS) indicates an improvement of 5.3% from a year ago.
Armstrong World Industries, Inc. (AWI - Free Report) presently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 7.9%, on average. Shares of AWI have increased 25.7% in the past year.
The Zacks Consensus Estimate for AWI’s 2024 sales and EPS indicates a rise of 1.4% and 7.5%, respectively, from the prior-year levels.
Installed Building Products, Inc. (IBP - Free Report) currently sports a Zacks Rank of 1. IBP delivered a trailing four-quarter earnings surprise of 7.3%, on average. The stock has surged 74.2% in the past year.
The Zacks Consensus Estimate for IBP’s 2024 sales and EPS indicates a growth of 6.4% and 7.2%, respectively, from the prior-year levels.