In a strategic leap into the commercial roofing market, TopBuild Corp. has inked a definitive agreement to acquire Progressive Roofing for $810 million in cash, the companies announced Tuesday. The deal, advised by powerhouse law firm Jones Day for TopBuild and Brownstein Hyatt Farber Schreck LLP for Progressive Roofing and its private equity sponsor Bow River Capital, is set to close early in Q3, pending regulatory green lights.
Funded through a combination of cash reserves and an expanded credit facility, the transaction represents a high-stakes maneuver by TopBuild to diversify its revenue and deepen its commercial construction footprint.
From Rooftops to Recurring Revenue: Strategy Behind the Buy
TopBuild, best known for supplying construction materials, said the acquisition gives it a critical foothold in the growing commercial roofing sector, significantly strengthening its building envelope installation offerings.
CEO Robert Buck framed the move as both defensive and offensive: “Entering the large and growing commercial roofing business through the acquisition of Progressive Roofing is a natural next step for TopBuild,” he said. “It will allow us to offer commercial customers more comprehensive solutions while reducing our exposure to market volatility.”
Indeed, Progressive Roofing’s business model is built for resilience. Approximately 70% of its $438 million annual revenue stems from non-discretionary services like re-roofing and maintenance, creating a stable income stream insulated from construction cycles. The remaining revenue comes from new builds in critical sectors including education, healthcare, and government.
