ADO

The Business

ADO Products, LLC (www.adoproducts.com) is a Rogers, Minnesota-based provider of insulation accessories serving the North American residential construction market. ADO is a value-added supplier that designs and manufactures attic insulation vents marketed under the Durovent and proVent brands, as well as distributes a broad range of insulation accessories, including foam, netting, plastic sheeting, protective gear and other related building products. ADO markets its products to customers throughout the building products value chain, including insulation contractors, home improvement retailers and wholesale building products distributors.

The Industry

ADO participates in the growing $8+ billion U.S. insulation market. Within the U.S. insulation market, ADO maintains a #1 market position in attic insulation vents and enjoys an emerging presence in other insulation accessory categories. Continued demand for ADO’s products will be driven by (i) growing U.S. insulation market, (ii) long-term projected growth and positive new housing construction trends, (iii) favorable regulatory environment for energy efficiency resulting in increased insulation spend, and (iv) balanced mix of repair/replacement demand for insulation accessories.

The Process

Prestwick initiated this transaction and acted as the exclusive financial advisor to ADO and its shareholders. Prestwick designed an M&A process, prepared marketing materials, evaluated acquisition proposals and negotiated the transaction with TopBuild Corp. (NYSE: BLD) and its subsidiary, Service Partners. TopBuild is the nation’s largest installer and distributor of insulation products, and Service Partners is a leading distributor of insulation products with over 70 branches throughout the U.S. Prestwick’s process included both domestic and international strategic acquirers.