We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
TopBuild (BLD) Acquires CBP, Boosts Presence in California
Read MoreHide Full Article
TopBuild Corp. (BLD - Free Report) has acquired a residential and light commercial insulation company, California Building Products (“CBP”).
CBP primarily serves Bakersfield, Modesto and Fresno in California. In the past 12 months (ending Jun 30, 2021), CBP generated approximately $18 million of revenues. The buyout will expand TopBuild's reach in the California market.
The president and CEO of TopBuild, Robert Buck, said, “California Building Products is a great addition to TopBuild, enhancing our residential presence in northern California. The leadership team of the company will remain in place, continuing to focus on growing this business, expanding the already solid customer base, and strengthening our operations in the region.”
Acquisitions Bode Well
Acquisitions are an integral part of TopBuild’s growth strategy. In the past six years, TopBuild has acquired 26 companies that are contributing more than $820 million to annual revenues. It has acquired seven businesses since January 2021, which are likely to generate $250 million of annual revenues.
In September, the company inked a deal with global private equity firm Advent International to acquire the latter’s Distribution International (“DI”) for $1 billion in cash. DI is the leading specialty distributor of mechanical insulation solutions for industrial and commercial end markets.
In August, it acquired a fabricator and distributor of gutter products and specialty metals, Valley Gutter Supply, for an undisclosed amount. This addition helped the company strengthen Service Partner’s gutter fabrication and distribution capacity throughout the state of California.
Image Source: Zacks Investment Research
Shares of TopBuild have increased 13.4% in the past three months against the industry's 2.1% fall. The solid price performance was primarily backed by strong earnings growth over the last several quarters. This installer and distributor of insulation and other building products has been banking on strategic acquisitions, strong Insulation Installation business, and strengthening repair and remodeling activities. Also, solid prospects across the business and operational efficiencies are likely to help the company drive growth.
Other top-ranked stocks in the same space include Frontdoor, Inc. (FTDR - Free Report) , United Rentals, Inc. (URI - Free Report) and James Hardie Industries plc , each carrying a Zacks Rank #2. Frontdoor, United Rentals, and James Hardie’s earnings are likely to increase 11.6%, 25.1%, and 30.1%, respectively, in 2021.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
TopBuild (BLD) Acquires CBP, Boosts Presence in California
TopBuild Corp. (BLD - Free Report) has acquired a residential and light commercial insulation company, California Building Products (“CBP”).
CBP primarily serves Bakersfield, Modesto and Fresno in California. In the past 12 months (ending Jun 30, 2021), CBP generated approximately $18 million of revenues. The buyout will expand TopBuild's reach in the California market.
The president and CEO of TopBuild, Robert Buck, said, “California Building Products is a great addition to TopBuild, enhancing our residential presence in northern California. The leadership team of the company will remain in place, continuing to focus on growing this business, expanding the already solid customer base, and strengthening our operations in the region.”
Acquisitions Bode Well
Acquisitions are an integral part of TopBuild’s growth strategy. In the past six years, TopBuild has acquired 26 companies that are contributing more than $820 million to annual revenues. It has acquired seven businesses since January 2021, which are likely to generate $250 million of annual revenues.
In September, the company inked a deal with global private equity firm Advent International to acquire the latter’s Distribution International (“DI”) for $1 billion in cash. DI is the leading specialty distributor of mechanical insulation solutions for industrial and commercial end markets.
In August, it acquired a fabricator and distributor of gutter products and specialty metals, Valley Gutter Supply, for an undisclosed amount. This addition helped the company strengthen Service Partner’s gutter fabrication and distribution capacity throughout the state of California.
Shares of TopBuild have increased 13.4% in the past three months against the industry's 2.1% fall. The solid price performance was primarily backed by strong earnings growth over the last several quarters. This installer and distributor of insulation and other building products has been banking on strategic acquisitions, strong Insulation Installation business, and strengthening repair and remodeling activities. Also, solid prospects across the business and operational efficiencies are likely to help the company drive growth.
Zacks Rank & Other Key Picks
TopBuild currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other top-ranked stocks in the same space include Frontdoor, Inc. (FTDR - Free Report) , United Rentals, Inc. (URI - Free Report) and James Hardie Industries plc , each carrying a Zacks Rank #2. Frontdoor, United Rentals, and James Hardie’s earnings are likely to increase 11.6%, 25.1%, and 30.1%, respectively, in 2021.