Benzinga | Sep 8, 2021 09:10AM EDT

TopBuild To Buy Distribution International For $1B

* TopBuild Corp. (NYSE:BLD) agreed to acquire Distribution International Inc. from Advent International in an all-cash transaction valued at $1 billion.

* Distribution International (DI) is a specialty distributor and custom fabricator of mechanical insulation and related accessories for industrial and commercial end markets.

* DI has 101 branches across the U.S. and Canada and recorded revenue of ~$747 million for the trailing 12 months ended June 30, 2021, on a pro forma basis.

* TopBuild held cash and cash equivalents of $261.7 million as of June 30, 2021. It plans to fund the deal via a combination of debt financing and cash on hand.

* The transaction is expected to close in the fourth quarter of 2021.

* TopBuild expects the deal to be accretive to GAAP EPS in the first full year after close. It expects run-rate synergies of $35 million - $40 million over the 24 months after closing.

* Price Action: BLD shares closed lower by 1.34% at $216.81 on Tuesday.