Installed Building (IBP) Acquires AMD Distribution and Expands Reach


Installed Construction Products, Inc. IBP has capitalized on a strong pipeline of acquisition opportunities in several geographies, products and end markets. On that note, the company acquired AMD Distribution, Inc. (“AMD”), based in Spring Valley, Minnesota.

This leading installer of insulation and complementary building products expects the acquisition to immediately pay off.

Founded in 2001, AMD has eight locations, including three bonded warehouses, generating approximately $ 71 million in annual revenue in 21 Midwestern and Western Mountain states. AMD distributes installation-related products and materials to the residential, commercial and agricultural end markets. In addition, it distributes the accessories and equipment used throughout the insulation installation process.

Jeff Edwards, President and CEO, said, “Over the long term, we expect AMD to improve the flexibility of our supply chain and cost structure for insulation accessories. Additionally, we believe there is an opportunity for this platform to help grow our complementary building products. “

So far in 2021, the company has completed acquisitions contributing approximately $ 211 million in annual revenue, exceeding its own goal of $ 100 million for the year. The company plans to invest more in such activities in the future and foresees a strong outlook for 2022.

Inorganic strategies: a boon

Acquisitions are a key element of Installed Building’s growth strategy. The company has a strong pipeline of acquisition opportunities in multiple geographies, products and end markets.

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As part of the continued strategy of geographic expansion and increasing its share in certain markets, it completed seven business combinations in the first nine months of 2021, contributing nearly $ 44 million to sales. annual business and $ 2.3 million in net income. The company continues to focus on profitable growth through its strategy of acquiring well-managed installers of insulation and complementary building products.

When it comes to price performance, shares of this company Zacks Rank # 3 (Hold) have gained 36.1% year-to-date compared to the industry’s 14.3% rise in Zacks Building. Products – Miscellaneous. Profits for 2021 are expected to increase 26.7% year over year. You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here.

Some top-ranked stocks in the construction sector

Beazer Homes USA, Inc. BZH currently sports a Zacks Rank # 1. This Atlanta-based homebuilder continues to enjoy strong operational execution and consistent strength in the housing market.

Shares of Beazer Homes have gained 46.1% in the past year compared to the industry rally of 35.3%. Profits are expected to increase 23.7% in fiscal 2022.

TRI Pointe Group inc. TPH currently wears a Zacks Rank # 2. This Irvine, California-based home builder designs, builds and sells detached and attached single family homes in the United States. Robust demand and pricing as well as improved operating leverage boosted the performance of TRI Pointe. Cost-cutting initiatives implemented earlier this year and the focus on entry-level buyers added to the positives.

TRI Pointe shares have jumped 57.6% in the past year. Profits for 2021 and 2022 are expected to increase by 80.2% and 9.6% respectively.

Meritage Houses Company (MTH) currently sports a Zacks Rank # 1. Based in Scottsdale, Arizona, Meritage Homes is a leading designer and builder of single family homes. The focus on entry-level LiVE.NOW homes was a determining factor.

MTH has gained 44.9% over the past year. Profits are expected to increase 74.4% in 2021 and 22.2% next year.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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