AGB 2021.20 - TopBuild (BLD)

Improving Position in a Highly Cyclical Industry

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TopBuild

TopBuild is the leading installer and distributor of insulation products and other building materials for new residential and commercial construction in the U.S. The company operates two divisions. TruTeam is the installation division with over 200 branches (72% of revenues) and Service Partners is the distribution division with over 75 warehouses (28% of revenues). The company services over 40% (30% from installation, 10% from distribution) and geographically covers 95% of all housing starts in the U.S.

TopBuild was owned by Masco until the company was spun out in June 2015. Masco acquired TruTeam in 1995 and later added on Service Partners in 2001. From then to 2005, Masco acquired 150+ insulation businesses and heavily invested in growing the combined businesses until the great recession. With housing starts slowing down from 2006-2008 and then staying lower than expected from 2008-2011, Masco rightsized the …