Installed Building Products (NYSE: IBP) announced Nov. 12 that it has closed its acquisition of Old Dominion Group. ODG is a mechanical and industrial installer of insulation, firestopping and other complementary products.
The deal carries an enterprise value of $698 million. That’s the $725 million purchase price minus the transaction bonuses and management incentive funding paid at closing. IBP paid about 60% in cash and 40% in its own stock.
Here’s what the release shows:
ODG revenue for the 12 months ended Sept. 30, 2026: about $370 million
ODG Adjusted EBITDA for the same period: about $68 million
Expected cost synergies: $6 million to $8 million a year within 24 months
Effective multiple: 9.3x LTM Adjusted EBITDA, including synergies
Net leverage: 1.91x after the deal, up from 1.31x
Term loan add-on: $246.7 million
IBP expects the deal to add to revenue growth, adjusted operating margins and adjusted EPS right away. It also expects strong cash flow to help bring acquisition-related leverage down over time.
Beyond the Subdivision
IBP is one of the country’s largest new residential insulation installers. With ODG on board, commercial work rises from about 20% to about 28% of company revenue.
ODG joins IBP’s existing $50 million commercial mechanical insulation business, creating a platform with about $420 million in combined revenue. Its markets include healthcare, education, manufacturing, industrial facilities and data centers. IBP says those sectors are less correlated with single-family residential cycles.
Keeping the Name on the Door
ODG will keep operating under its regional brands, and CEO Jeff Davoud will lead IBP’s mechanical and industrial installation business.
Jeff Davoud, the Davoud family and ODG’s existing shareholders have broadened equity ownership opportunities to about 75 key leaders and managers. The compensation committee of IBP’s board also approved equity awards for up to 50 key employees who joined IBP through the deal, none of them IBP executive officers.
The awards carry a $180 million target value and can pay out up to 2.5 million shares. They vest only if financial and operational milestones are met over three and five years and the recipients stay on.
ODG spent 45 years building its reputation on a simple principle: “Do What You Say You Will Do.” Now there’s a vesting schedule riding on it.
