Stock Monitor: Armstrong World Industries Post Earnings Reporting
LONDON, UK / ACCESSWIRE / March 06, 2018 / Active-Investors.com has just released a free research report on TopBuild Corp. (NYSE: BLD). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=BLD as the Company's latest news hit the wire. On March 02, 2018, the Company announced that it has signed an agreement to acquire United Subcontractors, Inc. ("USI"), a leading provider of installation, construction, and distribution services, in an all-cash transaction for approximately $475 million. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is currently working on the research report for Armstrong World Industries, Inc. (NYSE: AWI), which also belongs to the Industrial Goods sector as the Company TopBuild. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, TopBuild most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/'symbol=BLD
The acquisition provides the Company with a stronger geographic footprint in key growth regions and a more robust business and product mix, which will enhance the value proposition for customers.
Details of the Agreement
- TopBuild will fund the transaction using a combination of debt financing and cash on hand. The Company plans use proceeds from a $350 million bond issuance, $100 million from a delayed draw term loan commitment currently available under its existing secured credit facility, and $25 million from cash on hand or drawings under its revolving credit facility.
- The transaction is expected to be accretive in the first year and it should produce strong cash flow. TopBuild is likely to benefit from greater supply chain efficiencies, a strong and energized branch management team, and the addition of a seasoned labor force.
- The Company expects to achieve cost savings of $15 million, with approximately $5 million to $10 million expected in the first full year after closing and the full run-rate by the end of year two after closing.
- The agreement has been approved by TopBuild's Board of Directors, but is subject to customary closing conditions, including expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The transaction is likely to close in the second quarter of 2018.
- At the close of the transaction, TopBuild's net debt to pro-forma adjusted EBITDA implies a multiple of 2.9 times pre-synergies, or 2.8 times post-synergies.
Combined Organization will be Better Positioned to Provide High-Quality Solutions to Customers
Commenting on the acquisition, Bill Varner, Chief Executive Officer of USI, stated that this will be a tremendous outcome for all USI's stakeholders as the combined organization will be better positioned to provide innovative and high-quality solutions to its customers. Bill added that both companies have shared values and are guided by a commitment to reliability, high performance, and safety.
Financial and Legal Advisors
J.P. Morgan Securities LLC and SunTrust Robinson Humphrey, Inc. acted as financial advisors, and Greenberg Traurig, P.A. served as its legal advisor to TopBuild. RBC Capital Markets LLC acted as financial advisor, and Gibson, Dunn & Crutcher LLP served as its legal advisor to USI.
TopBuild's Recent Acquisition Deal
On January 22, 2018, the Company acquired Santa Rosa Insulation and Fireproofing (Santa Rosa), a residential and commercial insulation company which had been providing installation services to the greater Miami area for over 35 years. For the twelve months ended December 31, 2017, Santa Rosa generated approximately $6 million in annual revenue. The acquisition enabled TopBuild to increase its market share in the greater Miami region.
About United Subcontractors, Inc.
Established in 1997 and headquartered in Saint Paul, Minnesota, USI is a leading provider of installation, construction, and distribution services to the residential and commercial construction markets. The Company generated pro-forma annual revenue of approximately $375 million in 2017 and adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) margin of 12.5%. USI has over 1,700 employees throughout 46 locations across 16 states.
About TopBuild Corp.
TopBuild is the leading installer and distributor of insulation products to the United States construction industry, based on revenue. The Company was formed in 2015 from the spin-off of Masco Corp.'s Installation and Other Services businesses. TopBuild is headquartered in Daytona Beach, Florida.
Stock Performance Snapshot
March 05, 2018 - At Monday's closing bell, TopBuild's stock rose 2.47%, ending the trading session at $74.27.
Volume traded for the day: 269.31 thousand shares.
Stock performance in the last three-month - up 9.24%; previous six-month period - up 25.14%; and past twelve-month period - up 69.03%
After yesterday's close, TopBuild's market cap was at $2.48 billion.
Price to Earnings (P/E) ratio was at 31.92.
The stock is part of the Industrial Goods sector, categorized under the General Building Materials industry. This sector was up 1.1% at the end of the session.
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