Skip to Content
March 10, 2021

Andrew K. Petryk authors, “State of the Market: Mergers and acquisitions, and market valuations in the fenestration market,” for Window + Door Magazine

COVID-19 shocked industries in 2020, and Residential Building Products was no exception. However, the slowdown was only short-term, buoyed by a strengthening housing market, with demand accelerating since June.

The pandemic has been called a “catalyst,” spurring renewed consumer interest in the home, added to which economic expansion, favorable demographics, and strong fundamentals are tailwinds expected to sustain growth. Manufacturers are forecasting mid- to high-single-digit revenue growth in 2021, and there is great visibility in window and door production deep into the second and third quarters.

The M&A market is also exhibiting strength, with transaction activity accelerating since May. Strategic and financial buyers are showing strong interest in acquisitions, valuations have returned to pre-COVID levels, and capital is plentiful to support high-quality transactions:

  • Fortune Brands Home & Security’s bellwether purchase of LARSON Manufacturing Company at a valuation of 8.8x TTM EBITDA is indicative of strong demand for highly strategic assets in the current environment.
  • PGT Innovations’ buys of Eco Window Systems and NewSouth Window Solutions underscore appetite for bolt-on acquisitions.
  • Financial sponsors are capitalizing on market fragmentation to drive consolidation. Buyer CenterOak Partners/Cascade Windows acquired Amerimax. The Riverside Company sold Sunrise Windows & Doors to MI Windows and Doors, exiting its 10-year investment.

Read the article in its entirety on the Window + door website, or within its January/February 2021 digital issue (page 48).