• Corporate Finance Transactions

BGL Building Products Insider: Housing Gains Fuel M&A in Residential Building Products

September 27 2018

Cleveland, OH – September 27, 2018 – A growing economy and positive momentum in the housing market are fueling optimism in the residential building products market, according to the Building Products Insider, an industry report released by Brown Gibbons Lang & Company (BGL). Strategic M&A remains high and is broad-based, with buyers aggressively pursuing acquisitive growth to increase scale, market position, and profitability.

Favorable industry fundamentals, underscored by appreciating home values, strong housing turnover, and household formation, are reinforcing positive investor sentiment and feeding an active M&A market, where residential building products has seen a rising level of activity. Valuations remain strong with premium multiples assigned to assets that bring portfolio diversification, margin expansion, and access to new markets.

Strategic and financial buyers have been aggressive with participants speaking to active acquisition pipelines. Recent headline deals signal a bullish outlook on the sector’s growth prospects, with The Sherwin-Williams Company (The Valspar Corporation), NCI Building Systems (Ply Gem Industries), and Leonard Green & Partners (SRS Distribution) among the notable buyers, suggestive of continued consolidation in the coming quarters.

BGL publishes periodic Insider research publications on a variety of industries including automotive; building products and construction materials; business services; consumer and retail; environmental and industrial services; healthcare and life sciences; industrials; metals; and plastics and packaging.  Download BGL Insider reports at https://www.bglco.com/research.  

About Brown Gibbons Lang & Company

Brown Gibbons Lang & Company is a leading independent investment bank serving the middle market. BGL specializes in mergers and acquisitions advisory services, debt and equity placements, financial restructuring advice, and valuations and fairness opinions, with global industry teams in Business Services, Consumer & Retail, Environmental & Industrial Services, Healthcare & Life Sciences, Diversified Industrials, Metals & Metals Processing, and Real Estate. BGL has offices in Atlanta, Chicago, Cleveland, Denver, Philadelphia, San Antonio, and San Diego in addition to Global M&A partner offices in more than 50 countries across 5 continents. BGL is able to deliver to our clients unparalleled access to strategic relationships, investors, and opportunities globally. For more information, please visit www.bglco.com.

 

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