Installed Building Products (IBP) said Tuesday it has acquired Minnesota-based mechanical insulation provider Diamond Energy Systems in a transaction expected to contribute roughly $12 million in annual revenue.

The acquisition expands Installed Building Products' mechanical insulation operations across the Upper Midwest, the company said. Diamond Energy Systems primarily provides industrial and commercial retrofit services, the company added.

Installed Building Products also said it repurchased about 240,000 shares for roughly $51.2 million in May under its existing buyback program, which has about $425 million remaining authorization as of May 19.

Shares of the company were up 1.8% in premarket activity Tuesday.