Installed Building Products Expands Commercial Insulation Reach With Thermo-Tech Acquisition Adding 250+ Locations and 10,000 Employees
Installed Building Products has acquired Thermo-Tech Mechanical Insulation, a Wisconsin-based provider with 40 years of mechanical insulation experience, through Angle Advisors as sole investment banking advisor. The deal boosts IBP’s footprint to over 250 locations and 10,000 employees, enhancing its commercial insulation capabilities.
1. Acquisition Details
Installed Building Products, Inc. has completed the acquisition of Thermo-Tech Mechanical Insulation, a Wisconsin-based specialist with 40 years of experience in mechanical insulation contracting. Angle Advisors served as exclusive investment banking advisor to Thermo-Tech, guiding the transaction from initial valuation through closing. The deal adds Thermo-Tech’s five regional service centers and its proprietary ERP forecasting system to IBP’s portfolio, reinforcing IBP’s commitment to expanding its commercial insulation footprint.
2. Operational Expansion and Workforce Growth
With the integration of Thermo-Tech, IBP’s national network now spans over 250 branch locations and employs more than 10,000 personnel. Thermo-Tech’s skilled workforce of insulation technicians and project managers brings expertise in HVAC ductwork, plumbing systems and process piping insulation. The expanded headcount is expected to support a projected 15% increase in annual commercial revenue run-rate, leveraging cross-selling opportunities between residential and commercial divisions.
3. Strategic Market Position
IBP’s entry into the mechanical insulation segment deepens its presence in the commercial construction market, a sector forecasted to grow at a 5.2% CAGR over the next five years. By combining Thermo-Tech’s regional strongholds in the Upper Midwest with IBP’s national sales force, management estimates the combined entity will address an addressable market exceeding $8 billion. This positions IBP to capture market share from local competitors and to pursue larger, multi-state commercial contracts.
4. Transaction Execution and Advisory Role
Angle Advisors, with transactional experience across over 310 M&A deals since 2009, executed a structured bidding process that maximized Thermo-Tech’s valuation. The advisory team’s analysis incorporated Thermo-Tech’s ERP-driven cost forecasts and backlog visibility, enabling IBP to assess integration synergies and working capital needs. Both companies anticipate operational integration milestones to be completed within six months, with cost savings and cross-selling synergies contributing to accretion in IBP’s adjusted EBITDA by year end.