The Company
Founded in 1966 in Burbank, California, Viking Insulation Co. (“Viking”) is a leading independent contractor engaged in commercial and specialty building insulation installation projects across Southern California. Viking is one of the most respected commercial installation contractors in the region and has completed large projects for Amazon, Google, Warner Brothers, Universal Studio and Home Depot.
The Challenge
After close to 20 years of combined ownership by the 3 unrelated shareholders, they made the decision to search for the next owner that could help accelerate the growth and success of the business and preserve the legacy of the company.
The company was founded by the father of one of the owners, adding an additional layer of emotional dynamics to the discussions regarding succession. The owners also had different time horizons in which they wanted to retire and exit the business ranging from “as soon as possible” to “over the next 3 to 5 years”.
The shareholders wanted to find a relatable advisory partner that would empathize with the interpersonal dynamics between the owners, understand the unique aspects of their business which contribute to its value, protect their interests and advocate strongly on their behalf.
The Solution
Over a 10-month period, Peloton worked with the shareholders to prepare the company and then embark on a competitive process including, large publicly traded strategic investors, regional strategic investors as well as select private equity firms and family office investors with industry experience.
Ultimately, Viking selected TopBuild (NYSE: BLD), a leading installer and distributor of insulation and building material products to the U.S. construction industry. TopBuild combines the scale, purchasing power and operational advantages of a national platform with a local go-to-market strategy through its national network of locations across the country.
The shareholders achieved their personal goals as well as ensured the longevity of the Viking legacy and workforce, as TopBuild has encouraged Viking to maintain its culture and union workforce in Southern California. Additionally, two of the shareholders were able to retire in the short term, while Casey Kranz, a shareholder and long-time President of Viking, joined the TopBuild team and continues to manage and grow the business unit alongside his daughter.
