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March 3, 2022

Andrew K. Petryk Authors “The Industry Pulse: State of the Market” for Window + Door Magazine

Andrew K. Petryk, Managing Director and Head of BGL’s Industrials vertical, has authored a new piece for Window + Door magazine entitled, “The Industry Pulse: State of the Market.” The article discusses the housing market, industry performance, mergers and acquisitions, valuations, and more.

Secular growth and an abundance of liquidity are driving a hot M&A market in residential building products, and the fenestration market is benefiting from this momentum.

Cash-rich strategic buyers are seeking acquisitions to boost topline growth through product line, geographic, and channel expansion. Strategics are showing selectivity; however, when a high-quality deal comes to market, they are moving faster and are aggressive on valuation and deal terms:

  • PGT Innovations spent close to $250 million on three acquisitions in 2021, including Anlin Windows & Doors in October, paying $126 million and 8.5x EBITDA (pre-synergies). Anlin achieved sales growth of more than 30 percent … illustrating that buyers are paying strong multiples for growth.
  • In October 2021, Westlake Chemical (WLK) completed the acquisition of Boral’s North American building prod­ucts business in a $2.15 billion all-cash transaction … valuing the business at an estimated ~10x F1H21 EBITDA annualized, pre-synergies.

Financial buyers are equally active and looking to deploy capital into new growth platforms as well as tuck-in acquisitions of businesses serving fragmented marketplaces:

  • In March 2022, CRH plc (ISE:CRG) announced it is divesting Oldcastle Building Envelope to KPS Capital Partners. The U.S.-based unit makes glass building products for windows, curtain walls, and storefronts, among other applications. The $3.8 billion deal values the business at 11.3x EBITDA.

For all of Andrew’s insights, read the full article in Window + Door’s January/February 2022 digital issue (page 50).