Installed Building Products, Inc (NYSE:IBP), an industry-leading installer of insulation and complementary building products, announced today that it has entered into a definitive purchase agreement to acquire all of the outstanding equity of Trilok Industries, Inc., the holding company for Alpha Insulation and Waterproofing, Inc., and Alpha Insulation and Waterproofing Company (collectively known as “Alpha” or “Alpha Insulation and Waterproofing”).
Founded in 1982, Alpha Insulation and Waterproofing is headquartered in Atlanta, Georgia and serves commercial customers through an expanding network of 8 branch locations located in Georgia, Florida, Texas, Alabama, Tennessee and North Carolina. Alpha’s products include waterproofing, insulation, fireproofing, and fire stopping. Alpha services large, long-lead time commercial projects including office buildings, airports, sports complexes, museums, hospitals, hotels, and educational facilities.
“With June 30, 2016 trailing twelve-month sales of $89.2 million, Alpha provides IBP with an excellent growth platform that significantly increases our sales mix to commercial end markets and expands and diversifies our existing product mix,” stated Jeff Edwards, IBP’s Chairman and Chief Executive Officer. “Alpha is recognized throughout the industry for its trusted, dependable, and high-quality reputation, evidenced by the work on such high-profile projects as Atlanta Braves SunTrust Park and Dallas/Fort Worth International Airport.”
“IBP is the ideal partner to help us accelerate our growth and we are excited to bring our commercial insulation, waterproofing, fire stopping and fireproofing expertise to IBP,” said Vic Verma, Alpha’s Chief Executive Officer and Founder. “IBP’s national footprint quickly expands our geographic opportunity for both organic and acquisition growth. We look forward to capitalizing on the resources available and continuing our success with IBP.”
Mr. Edwards continued, “Alpha represents IBP’s largest acquisition to date and includes, as of September 30, 2016, an approximately $85.0 million backlog of commercial projects, which we expect to contribute to IBP’s 2017 revenues. Alpha is led by a seasoned team of senior managers, which has an average of over 25 years of industry experience. We look forward to working with Vic and his team, and building off of their success. Upon closing in the first quarter of 2017, IBP expects the acquisition will be immediately accretive to earnings.”
Closing of the acquisition is subject to customary closing conditions, including expiration of the applicable waiting periods under the Hart-Scott-Rodino Act.
About Installed Building Products
Installed Building Products, Inc. is the nation’s second largest insulation installer for the residential new construction market and is also a diversified installer of complementary building products, including garage doors, rain gutters, shower doors, closet shelving and mirrors, throughout the United States. The Company manages all aspects of the installation process for its customers, including direct purchases of materials from national manufacturers, 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 from its national network of branch locations.