Installed Building (IBP) Expands Presence with Two Acquisitions – June 18, 2024

Installed Building Products, Inc. (IBP – Free Report) acquired Thrice Energy Solutions, LLC (Thrice) and Gutter Pro Enterprises, Inc (Gutter Pro). These acquisitions are expected to add approximately $14 million to annual revenues. In June, IBP repurchased $46 million of common stock under its existing repurchase program.

Thrice Energy Solutions is based in Oklahoma City, OK and operates in Oklahoma and Texas, focusing on fiberglass and spray foam insulation for residential and commercial buildings. This is IBP’s first branch in one of Oklahoma’s largest new construction markets, strengthening its presence in a key area for residential and commercial projects.

On June 3, the company completed the acquisition of Gutter Pro, a gutter installation company. Located in Plymouth, Massachusetts, Gutter Pro serves residential and commercial clients in Massachusetts and Rhode Island. The acquisition strengthens IBP’s position in the Northeast region.

The move marks IBP’s efforts to expand into new geographic areas and diversify its product offerings. Acquisitions are a key part of the company’s growth strategy, with IBP maintaining a solid pipeline and actively pursuing opportunities across regions, products and markets.

The focus on acquisitions bodes well

Shares of this Zacks Rank #3 (Hold) company have gained 69% in the past year, compared with a gain of 35.7% in the Zacks Building Products – Miscellaneous industry. The company benefits from improvements in the single-family end market and continued strong sales growth in the multifamily end market. The emphasis on strategic acquisitions also bodes well.

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The company focuses on acquisitions, which is the main priority for capital allocation. Despite significant growth, IBP sees ample opportunities to expand its geographic reach and diversify its product offering throughout its national network of branches.

During the first quarter of 2024 and in April, IBP completed the acquisition of a Delaware-based installer specializing in fireplaces for new single-family construction projects, generating annual revenues of approximately $5 million. Acquired a North Carolina-based installer of insulation and complementary building products with annual revenues exceeding $6 million.

The company expects its multifamily project portfolio to remain active in its core geographic markets despite ongoing challenges in bringing new multifamily buildings to life. The long-term prospects in the residential and commercial end markets remain very promising.

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