Q1 2017 Building Products & Materials M&A Market Update

March 2017

BDO Capital is pleased to release our Q1 2017 building products newsletter which highlights an impressive resurgence in M&A activity in the sector and rapidly rising valuations. Optimistic buyers are aggressively seeking deals due to strong economic fundamentals and robust construction activity. Most market participants believe that we are in the early stages of a construction bull market that has several years remaining which will only serve to embolden and boost the confidence of investors and consolidators throughout the sector.

Based on our own pipeline of seller clients and other deals we are aware of in the market, we expect that the building products sector will experience robust M&A activity and continued market consolidation led by both corporate and private equity buyers during the remainder of 2017 and beyond. Strategic players are seeking to grow market share via acquisition and are looking to augment their brand portfolio and technological advantage. Meanwhile, an ever-increasing number of private equity firms are returning to the sector after a long hiatus seeking opportunities to capture new platforms and bolt-on acquisitions at attractive valuations in order to realize accretion as economic growth in the sector accelerates.