Installed Building Products Completes $698 Million Old Dominion Deal

The Tip Desk · November 12, 2026 · 2 min read

The insulation installer bought a mechanical and industrial installer that generated about $370 million in LTM revenue to lift commercial revenue to about 28% of the mix.

Installed Building Products, Inc. (IBP), an industry-leading installer of insulation and complementary building products, completed the acquisition of Old Dominion Group, a mechanical and industrial installer of insulation, firestopping, and other complementary products, at an enterprise value of $698 million, net of $27 million in transaction bonuses and management incentive funding payable at closing.

The deal was funded with about 60% cash and 40% IBP common stock. The stock portion comprised 1,381,731 shares valued at $217.19 a share, based on a 10-day volume-weighted average price ending two trading days before closing. Cash came from cash on hand, including proceeds of 2026 incremental term loans.

The company said the purchase establishes an immediate platform of scale in the commercial mechanical and industrial installation market. ODG generated about $370 million in revenue and $68 million of adjusted EBITDA for the last twelve months ended September 30, 2026. Combined last-twelve-months revenue is about $420 million, scaling IBP’s existing $50 million commercial mechanical insulation footprint into a national installation business.

Commercial end-market exposure rises from about 20% to about 28% of total company revenue, the company said, adding exposure to healthcare, education, manufacturing, industrial facilities, and data centers. The transaction is 9.3 times LTM adjusted EBITDA including expected run-rate synergies. IBP expects $6 million to $8 million in annualized run-rate cost synergies within 24 months, primarily from materials procurement scale and shared administrative efficiencies, and said the deal is expected to be immediately accretive to revenue growth, adjusted operating margins, and adjusted EPS.

Jeff Edwards, chairman and chief executive officer, said: “We are excited to welcome Old Dominion Group to the IBP family. The acquisition of ODG represents a significant step forward in our strategy to expand our presence in commercial and complementary building products.”

ODG will continue under its regional brands, led by CEO Jeff Davoud and existing operating management. Davoud, the Davoud family, and ODG’s existing shareholders broadened equity ownership opportunities across the organization to approximately 75 key leaders and managers. IBP’s compensation committee also approved performance-based equity inducement awards covering up to 50 key non-executive employees, with an aggregate target grant-date value of $180 million and up to 2,500,000 shares, vesting on three- and five-year financial and operational milestones.

Transaction-adjusted net leverage is 1.9 times, up from 1.31 times before the deal. Chief financial officer Michael Miller said the company expects continued cash flow generation to support reduction of acquisition-related leverage over time. IBP said it will use ODG’s relationships and its own acquisition experience to pursue bolt-ons in a fragmented mechanical and industrial insulation installation market.