Insulation and building materials distributor TopBuild on Monday announced that it would not go through with a proposed $960 million acquisition of Specialty Products and Insulation amid concerns from federal antitrust regulators.
TopBuild officials said that the companies agreed to a "mutual termination" of their agreement, originally announced last summer. Robert Buck, the company's president and CEO, said TopBuild and SPI were unable to agree to terms at a "value that worked for both companies" that would satisfy the Justice Department's view of competition within the metal building insulation sector. He added that the company would remain "active" on the acquisition front.
"We have a robust pipeline of opportunities, a core competency in integrating businesses and a proven M&A track record," Buck said in a statement.
TopBuild said that it paid a termination fee of $23 million under the purchase agreement.
Jonathan Kanter, assistant attorney general of the DOJ's antitrust division, said in a statement that the proposed deal would have eliminated "fierce" competition between "two of the largest providers of important building insulation products."
