Published on 15 Nov 2022 on Zacks via Yahoo Finance
Installed Building Products, Inc.’s IBP shares rose 2.6% in the after-hour trading session on Nov 14, after it announced the acquisition of Surface Purveyors, LLC.Working as Lynch Insulation, Surface Purveyors primarily installs fiberglass and spray foam insulation into multifamily, residential and commercial projects in Montana.Jeff Edwards, chairman and chief executive officer of IBP, stated, “With approximately $5 million of annual revenue, Lynch expands our presence in Montana. To date in 2022, we have acquired approximately $78 million of annual revenue. Acquisitions remain a key component of our growth strategy and we continue to have a robust pipeline of opportunities across multiple geographies, products, and end markets.”
IBP’s Acquisition Drive
Acquisitions have been a preferred mode of expansion for IBP for years. The company’s persistent focus on prioritizing profitable growth through acquiring well-run installers of insulation and complementary building products bodes well.In September, IBP acquired a Longwood, FL-based installer of spray foam and fiberglass insulation — All Florida Insulation, LLC — with annual revenue of approximately $2.4 million.In May, it acquired Statewide Insulation, Inc. (known as Tri-County Insulation and Acoustical Contractors), an installer of fiberglass insulation, spray foam insulation, and acoustical ceiling insulation into new residential, multifamily, and commercial projects in California.In 2021, the company wrapped up 12 acquisitions, representing approximately $211 million of annual revenues, more than doubling IBP’s $100 million acquired revenue target for 2021. In 2022, IBP expects to generate at least $100 million in revenues. So far, in 2022, the company has acquired approximately $54 million of annual revenues.