Distribution International to be sold to another TopBuild building insulation distributor for $ 1 billion

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BOSTON – Advent International, one of the world’s largest and most experienced private equity investors, has entered into an agreement to sell Distribution International Inc. (DI), the leading distributor of mechanical insulation in North America, to TopBuild Corp. to $ 1.0 billion. TopBuild, an installer and distributor of insulation products and building materials for the US construction industry, plans to finance the acquisition using a combination of debt financing and cash.

Founded in 1986, DI is the leading specialty distributor and custom manufacturer of mechanical insulation and related accessories in North America for industrial and commercial end markets. During its partnership with Advent, the company solidified its position as the largest player in the $ 5 billion mechanical insulation market, implementing a variety of growth initiatives. DI has successfully expanded into new product categories including metallic building insulation, broadened its end market focus in areas such as marine and data centers, and developed digital tools state-of-the-art for its customers. It also made 11 acquisitions, adding new geographies and expanding its product line.

During this time, DI’s footprint grew by nearly 50 locations, to 101 branches in the United States and Canada, and its revenue increased by more than 50%, to approximately $ 747 million for Last 12 months ended June 30, 2021, on a pro forma basis. This growth has enabled the company to help more customers reduce their energy consumption and carbon footprint, while creating safer work environments for their employees.

“During our partnership, DI consolidated its position as the No. 1 distributor and preferred partner for mechanical insulation products in North America through significant investments in mergers and acquisitions, expansion of the platform. training, people development and operational efficiency, ”said Stephen Hoffmeister, Managing Director at Advent International. “We are delighted that DI is building on its success as part of TopBuild, which is uniquely positioned to support DI’s continued growth and its goal of being the best employer in the wider distribution industry. We wish the DI team all the best in this next phase of their journey. “

“We are proud of what we have accomplished working with Advent and are grateful for their support and expertise, which have been instrumental in our growth,” said Steve Margolius, President and CEO of DI. “As we take this next step, we look forward to taking advantage of the new growth opportunities offered by our partnership with TopBuild, underpinned by a strong and shared commitment to people, safety and service. We look forward to working with them to build on our momentum and even better meet the needs of our customers. “

According to Robert Buck, President and CEO of TopBuild, “The acquisition of Distribution International is highly strategic for TopBuild. It aligns with our strategy of finding well-managed companies with experienced and talented teams with expertise in our core business of insulation and adjacent products. DI provides us with direct entry and immediate leadership in the $ 5 billion mechanical insulation market, which is a very attractive and complementary new growth platform for TopBuild.

Advent has extensive investment experience in the industrial sector. Since 1990, the company has invested $ 12 billion in more than 80 companies in various sub-sectors, including distribution, construction products, packaging, capital goods, chemicals and materials. In addition to DI, Advent’s investments in distribution include Rubix, MORSCO, ABC Supply, Bradco Supply and GTM.

The transaction, which has been approved by TopBuild’s board of directors, is subject to regulatory approval and other customary closing conditions and is expected to close in the fourth quarter of 2021.

RBC Capital Markets, LLC acts as financial advisor, and Weil, Gotshal & Manges LLP acts as legal advisor to Advent and DI. JP Morgan Securities LLC is acting as financial advisor and Jones Day is acting as legal advisor to TopBuild.

Founded in 1986, DI is a value-added distributor of specialty manufactured products related to insulation, HVAC products and safety supplies in North America. The Houston-based company has more than 100 locations and provides mission-critical products and services to its customers in the commercial building, chemicals, energy, power, railcar and automotive end markets. Marine. The company has the broadest reach of any distributor in its market in the United States and Canada.

TopBuild Corp., a Fortune 1000 company headquartered in Daytona Beach, FL, is an installer and distributor of insulation products and building materials for the US construction industry. TopBuild provides insulation and building materials services nationwide through TruTeam, which has approximately 235 branches, and through service partners, which distribute insulation and materials products. building from around 75 branches.

Founded in 1984, Advent International is one of the world’s largest and most experienced private equity investors. The company has invested in more than 380 companies in 42 countries and, as of March 31, 2021, it had $ 75 billion in assets under management. With 14 offices in 11 countries, Advent has established a globally integrated team of more than 245 investment professionals in North America, Europe, Latin America and Asia. The company focuses on investments in five key sectors, including commercial and financial services; health care; industrial; retail, consumer and leisure; and technology.


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