Installed Building Products to acquire Old Dominion Group for $698 million
IBP•Installed Building Products will acquire Old Dominion Group for $698 million, with consideration consisting of 60% cash and 40% common stock. The company expects $6 million to $8 million in annualized cost synergies within 24 months.
1. Deal terms and synergies
Installed Building Products is acquiring commercial mechanical insulation provider Old Dominion Group for $698 million. The consideration is 60% cash and 40% Installed Building Products common stock; the price excludes $27 million for transaction bonuses and management incentive funding. The company expects $6 million to $8 million in annualized cost synergies within 24 months, primarily from procurement scale and administrative efficiencies.
2. Expected business impact
The acquisition is expected to immediately boost revenue growth, adjusted margins and adjusted earnings per share. It would expand commercial end-market exposure to approximately 28% of revenue and strengthen the company's mechanical and industrial installation platform.
