TopBuild Corp. ( BLD ) on Tuesday announced it will acquire Progressive Roofing for $810 million in cash, marking a major expansion into commercial roofing and reinforcing its presence in non-cyclical segments of the construction market.

Founded in 1978 and based in Phoenix, Progressive Roofing operates 12 branches across the U.S. with more than 1,700 employees. The company reported $438 million in revenue and $89 million in EBITDA for the twelve months ending March 31, 2025. About 70% of its revenue comes from re-roofing and maintenance services, areas typically resistant to economic swings.

The company projects the acquisition will be immediately accretive to adjusted earnings per share. The implied valuation stands at 9.1 times trailing 12-month EBITDA or 8.6 times including anticipated synergies of $5 million.

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The deal, which is expected to close in the early third quarter of 2025, will be funded through TopBuild’s expanded credit facility and existing cash reserves.

TopBuild ( BLD ) CEO Robert Buck called the move a “natural next step” aligned with the company’s strategic priorities. Progressive CEO Nick Hadden said the two firms share a similar culture and that joining forces would accelerate value creation.

Progressive’s customer portfolio includes institutional and commercial clients in education, healthcare, government, and tech. Its operating model, which focuses on analytics and supplier relationships, closely matches TopBuild’s, making for a smooth integration. Both companies have a history of growth through acquisitions, and the deal is expected to provide a scalable platform in the fragmented $75 billion commercial roofing market.

As of first quarter of 2025, TopBuild’s pro forma net debt to adjusted EBITDA is approximately 1.6x. As of March 31, cash and cash equivalents stood at $308.811 million.

Related ETFs include SPDR S&P Homebuilders ETF and iShares U.S. Home Construction ETF ( ITB ) .

Price Action: BLD shares closed 1.13% lower at $343.69 on Monday.

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