DAYTONA BEACH, Fla., May 01, 2018 (GLOBE NEWSWIRE) -- TopBuild Corp. (NYSE:BLD), the leading purchaser, installer and distributor of insulation products to the U.S. construction industry, has successfully completed its previously announced acquisition of United Subcontractors, Inc. (“USI”) from an affiliate of Trilantic Capital Partners North America for $475 million cash.
Jerry Volas, Chief Executive Officer of TopBuild, stated, “We welcome the USI team to TopBuild and expect that our combined company will better serve our customer base through enhanced product offerings, services and capabilities across our national footprint. Our leadership teams have been working together to ensure a smooth transition as we integrate USI into TopBuild’s systems and supply chain. We are confident this combination will benefit all of our stakeholders.”
On a December 31, 2017 pro forma basis, inclusive of expected run rate synergies of $15 million, the combined company would have had revenue of $2.3 billion, adjusted EBITDA of $259 million, almost 10,000 employees and close to 300 installation and distribution locations. The Company funded this transaction through a previously announced 5.625% $400.0 million Senior Notes offering and a $100.0 million term loan. At the close of the transaction, the Company’s net debt to pro forma adjusted EBITDA implies a multiple of 2.8 times pre-synergies, or 2.6 times post-synergies. (see attached reconciliation table)
Volas noted, “The transaction is expected to be accretive in the first year and it should produce strong cash flow, enabling us to de-lever quickly.”
J.P. Morgan Securities LLC and SunTrust Robinson Humphrey, Inc. acted as financial advisors to TopBuild and Greenberg Traurig, P.A. served as its legal advisor for both the acquisition and the private offering of senior notes. RBC Capital Markets LLC acted as financial advisor to USI and Gibson, Dunn & Crutcher LLP served as its legal advisor.
About TopBuild
TopBuild Corp., headquartered in Daytona Beach, Florida, is the leading purchaser, installer and distributor of insulation products to the U.S. construction industry. We provide insulation services nationwide through TruTeam®, which has over 215 branches, and through Service Partners® which distributes insulation from over 75 branches. We leverage our national footprint to gain economies of scale while capitalizing on our local market presence to forge strong relationships with our customers. To learn more about TopBuild please visit our website at www.topbuild.com.
