Industrials M&A Transactions

Key Building Products Distribution Industry Trends in 2026

The building products distribution sector is being reshaped by several trends, including channel consolidations, digitalization, e-commerce adoption, and supply chain optimization, according to a new industry report released by BGL’s Building Products investment banking team. Businesses that broaden geographic reach, deepen customer relationships, improve efficiency, and strengthen supply chain networks, especially in fragmented specialty markets where tuck-in acquisitions can create strategic and operational value, are in high demand.

Inside the latest building products industry report, BGL examines the key trends shaping the building products distribution sector in 2026:

Channel Consolidation & Scale Expansion
As manufacturers and large customers streamline their supplier bases, distributors are under growing pressure to scale. Buyers increasingly favor larger partners that can serve multiple markets, offer broader product coverage, and deliver consistent pricing and logistics. In response, regional distributors have accelerated M&A to expand their geographic reach, strengthen purchasing leverage, and broaden their product offerings.

Acceleration of Technology Adoption
Contractors and dealers increasingly expect real-time inventory visibility, digital ordering, integrated pricing, and faster, more reliable fulfillment. In response, leading distributors are investing in ERP, e-commerce, CRM, data analytics, automation, and diversified sourcing capabilities to improve customer retention, optimize inventory, and enhance service reliability. Persistent volatility in freight, lead times, and material costs has further increased the value of scale and supply-chain sophistication, widening the competitive gap between larger technology-enabled distributors and smaller regional competitors.

Value-added Service Differentiation
As product commoditization intensifies, distributors are differentiating through services such as jobsite
delivery, fabrication, kitting, technical support, contractor loyalty programs, and inventory management
solutions. Service capabilities are becoming a key competitive advantage over pure product distribution.
M&A has become an integral tool for distributors to expand their service capabilities and add technology
that helps them serve more of the jobsite and modernize operations.

Shift Toward Specialty and Higher-Margin Products
Distributors are broadening their exposure to specialty categories, including engineered building materials, energy-efficient products, architectural solutions, waterproofing systems, and outdoor living products, which typically carry higher margins and stronger specification-driven demand.

The full industrials report is available for free download and examines the competitive landscape, identifies where transaction activity has been most active, and highlights which markets remain fragmented and primed for further consolidation.

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About BGL’s Building Products Investment Banking Team

Led by Andrew K. Petryk, BGL’s Building Products investment banking team is highly experienced in the residential, commercial construction, and infrastructure segments. We have successfully completed building products M&A transactions across a wide range of end markets, from basic building materials such as aggregates, lumber, and pavers and pre-cast products, to complex fenestration extrusions, glass fabrications, curtain wall, and highly-engineered specialty coatings. Our expertise also extends to key interior and exterior products, including windows and doors, flooring, cabinetry, and other essential building components.

Andrew Petryk quoted in, “Digging into the building products distribution landscape,” Hardware + Building Supply Dealer

BGL’s Head of Industrials Andrew Petryk, who also leads the firm’s building products investment banking team, is quoted in an article by Hardware + Building Supply Dealer entitled, “Digging into the building products distribution landscape.”

In the article, Andrew discusses the state of M&A activity in the building products distribution sector, noting the sector continues to gain momentum as buyers race to build scaled, multi-category platforms.

Andrew Petyrk on why this sector is attracting private capital: “Building products distribution is attracting substantial capital as strategic buyers and private equity firms look to consolidate fragmented markets, expand product portfolios, and strengthen service capabilities. As consolidation continues, the most attractive platforms will be those that scale with specialty expertise, value-added services, and technology investment.”

For all of Andrew’s insights, including his 2026 outlook on building products M&A activity, read the complete article on the Hardware + Building Supply Dealer website.

BGL Promotes Three Investment Bankers to Director

Brown Gibbons Lang & Company (BGL), a leading independent investment bank and financial advisory firm, is pleased to announce the promotion of Enrico J. Certo, Ryan W. Gillis, and Daniel J. MacDonald to Director.

The promotions reflect BGL’s continued investment in developing bankers with deep vertical and sector expertise, supporting the firm’s ability to deliver M&A, capital markets, board-level and strategic advisory services to clients and relationships across the middle market.

Effram E. Kaplan and Andrew K. Petryk, Co-Chief Executive Officers for BGL, stated, “BGL’s sector-focused platform is strengthened by bankers who bring deep industry knowledge, strong execution capabilities, and a commitment to delivering thoughtful advice to our clients. Rico, Ryan, and Dan have each contributed meaningfully to the continued growth of their respective coverage areas. Their promotions reflect their transaction leadership, sector specialization and dedication to advancing BGL’s client-focused approach.”

- Enrico Certo is a member of BGL’s Services and Infrastructure verticals, with a sector focus on Transportation & Logistics. He advises companies across the transportation, logistics and infrastructure services landscape, where clients are navigating evolving supply chain dynamics, increased demand for outsourced services and continued investor interest in asset-light and infrastructure-adjacent business models. Based in the firm’s Cleveland office, Rico joined BGL in May 2021 as an Associate and was promoted to Vice President in 2024.

- Ryan Gillis is a member of BGL’s Services and Infrastructure verticals, with a sector focus on Digital Infrastructure. He supports BGL’s coverage of businesses tied to the continued expansion of connectivity, data center infrastructure, fiber networks and other mission-critical digital infrastructure assets. His expertise is particularly relevant as demand for digital capacity, cloud adoption and AI-related infrastructure investment continue to drive strategic and financial investor interest across the sector. Ryan joined BGL in May 2024 as a Vice President and is based in the firm’s New York office. Prior to joining BGL, Ryan advised technology, media, and telecommunications clients at Houlihan Lokey and Wells Fargo, with a focus on digital infrastructure.

- Daniel MacDonald is a member of BGL’s Industrials vertical, with a sector focus within Building Products. He advises companies across the building products ecosystem, including businesses serving residential and commercial applications across both repair and remodel and new construction-related end markets. His sector experience supports BGL’s continued coverage of companies positioned around long-term demand drivers such as the undersupply of affordable homes. Based in the firm’s Chicago office, Dan joined BGL as an Analyst in June 2017 and was promoted to Associate in 2019 and Vice President in 2022.

Over the past 24 months, the firm has expanded its sector coverage within its Industrials, Consumer, Services, Infrastructure, Healthcare & Life Sciences, and Real Estate verticals, along with adding to its Financial Sponsor Coverage and Private Capital Advisory capabilities.

Learn more about BGL’s investment banking capabilities and our sector expertise here.

BGL Industrials Insider — Building Products Distribution M&A Gains Momentum as Buyers Pursue Scale

Building products distribution M&A activity continues to gain momentum as buyers race to build scaled, multi-category platforms, according to an industry report released by the Building Products investment banking team at Brown Gibbons Lang & Company (BGL).

BGL’s Head of Industrials Andrew Petryk: “Building products distribution is attracting substantial capital as strategic buyers and private equity firms look to consolidate fragmented markets, expand product portfolios, and strengthen service capabilities. As consolidation continues, the most attractive platforms will be those that scale with specialty expertise, value-added services, and technology investment.”

Inside the report, BGL examines the building products distribution competitive landscape, identifies where M&A activity has been most active, and highlights which markets remain fragmented and primed for further consolidation.

Key takeaways include:

Scale is becoming a strategic necessity, not just a growth lever.
Technology is emerging as a key competitive differentiator
Expansion into specialty products and value-added services is commanding a greater “share of wallet”
The winners are moving beyond pure distribution to integrated solutions
The increasing importance of strategic M&A and notable industry transactions involving strategic buyers and private equity firms

About BGL’s Building Products Investment Banking Team

BGL’s Building Products investment banking team is highly experienced in the residential, commercial construction, and infrastructure segments. We have successfully completed building products M&A transactions across a wide range of end markets, from basic building materials such as aggregates, lumber, and pavers and pre-cast products to complex fenestration extrusions, glass fabrications, curtain wall, and highly engineered specialty coatings. Our expertise also extends to key interior and exterior products, including windows and doors, flooring, cabinetry, and other essential building components.

Please complete the form above to download your complimentary copy.

Daniel J. MacDonald

Dan MacDonald is a Director and a senior member of BGL’s Industrials vertical, focusing primarily on Building Products, advising private equity firms and middle-market companies on mergers, acquisitions, and capital markets transactions in the Building Products sector.

His transaction experience spans several building products subsectors, including windows and doors, specialty glass, fencing, and commercial façades, providing him with a deep understanding of the sector-specific value drivers, buyer dynamics, and M&A trends that shape the broader building products industry.

In addition to his transaction work, Dan contributes to several building products publications, including Window + Door Magazine, Building Products Digest and BGL’s proprietary in-house publications, where he shares perspective on market trends, transaction activity, and investment themes impacting the sector.

Education

S.M.F., The Ohio State University’s Fisher College of Business
B.S., The Ohio State University

Certifications

Series 63, 79

Meghan Welch Appears on Schwab Network to Discuss 2026 Aerospace & Defense M&A Trends

BGL Managing Director Meghan Welch, who is a senior member of the firm’s Aerospace, Defense & Government Services investment banking team, recently joined Schwab Network to discuss the evolving landscape of aerospace & defense M&A.

In the interview, Meghan sat down with Marley Kayedn to discuss the surge in M&A activity across aerospace & defense, driven by rising geopolitical tensions and increased defense budgets. She also highlighted strong demand for modernization, AI-driven technologies, and reshoring efforts, alongside a commercial aerospace recovery.

BGL’s Aerospace, Defense & Government Services (ADGS) investment banking team has decades of relevant experience and a network of long-standing relationships across a broad range of subsectors, including aerospace technology, aviation services & distribution, defense, space, and government technology & services.

To watch the full interview, visit the Schwab Network website.

Read BGL’s ADGS team’s in-depth report on the aerospace & defense sector here.

ACG Chicago’s The State of M&A: Mid-Year Market Update & Dealmaker Perspectives

BGL’s Metals M&A Banker Hubert de la Vauvre will be Speaking at ACG Chicago Event

The Association for Corporate Growth (ACG) Chicago will be hosting The State of M&A: Mid-Year Market Update & Dealmaker Perspectives at Wintrust Bank in Chicago.

BGL Director Hubert de la Vauvre is a featured panelist at this year’s event which will explore how today’s market conditions influence dealmaking across the full transaction lifecycle and how firms can successfully adapt to keep deals moving forward.

Our Metals & Advanced Metals Manufacturing investment banking team recently joined PMA’s Chicago District. The team is active within major subsectors of the broader metals industry, including advanced metals manufacturing, service centers, mills & foundries, and metals recycling.

To read Hubert’s latest article examining the state of metals M&A and the 2026 trends driving deal activity, visit BGL’s Insights page.

2026 Scrap Expo

The 2026 Scrap Expo is designed especially for scrap metal dealers and processors, auto dismantlers, and others handling and preparing ferrous and nonferrous scrap.

BGL Managing Director Vince Pappalardo will be leading a panel discussion on “From Junk to Scrap to Recycled Metals,” on Thursday, September 10^th, from 9:30 to 10:30 a.m. This insightful session examines the forces that have influenced the industry’s past, leading us to where we are today. It also looks at the factors that will shape the metals industry of the future.

BGL Director Hubert De La Vauvre will also be attending the conference and available to discuss trends and upcoming opportunities in the metals recycling market.

Our Metals & Advanced Metals Manufacturing investment banking team is active within major subsectors of the broader metals industry, including metals recycling, advanced metals manufacturing, service centers, and mills & foundries.

Metals Industry Outlook: Renewed Momentum in M&A and Why Buyers Are Returning to the Market

After a slower period, metals M&A activity is gaining momentum. 2024 was a challenging year marked by softer demand, lower earnings, and tariff-related uncertainty. Buyers remained cautious as they entered 2025, with companies navigating a bumpy first half, waiting for performance to stabilize and to understand the full effects of “Liberation Day.” That sentiment has shifted meaningfully. As 2025 progressed and companies looked toward a stronger 2026, buyer and seller confidence returned to the market.

For sellers, going to market looks more attractive, given recent performance and an improving outlook. After spending much of the past 18 months on the sidelines, many strategic acquirers and financial sponsors are seeking growth again. “It really feels like a perfect storm coming together: better financial performance toward the end of 2025, a stronger outlook heading into 2026, improving market conditions, and buyers with real appetite to get deals done,” said Hubert De La Vauvre, Director and senior member of BGL’s Metals & Advanced Metals Manufacturing investment banking team. “There are numerous strategic and financial buyers who have largely been sitting on the sidelines, waiting for better market conditions, so they have capital to spend. They need to show their shareholders or limited partners growth, and organic growth is challenging in some metals markets. That combination has created a much more active M&A environment, reflected in both the quality of bids we’re seeing on live deals and the volume of inbound interest we’re receiving.”

Buyers are looking for defensible niches, with end-market exposure increasingly in focus. Some of the less “sexy” sectors, like automotive, construction, and agriculture, have been under pressure for some time. Buyer interest is strongest in markets with visible and durable demand. Aerospace and defense, data centers, power generation, medical components, and broader U.S. infrastructure investment, which are experiencing sustained capital spending, are driving demand across the metals value chain. Suppliers to large electrical, industrial, infrastructure, and defense-related projects are all benefiting. Mayville Engineering Company’s acquisition of Accu-Fab illustrates this trend, with the data center market being a key attraction.U.S. data center capacity is projected to double by 2027. “We’re seeing a meaningful shift in where buyers want to deploy capital, with A&D, data centers, and power generation standing out as particularly attractive growth markets. If you’re a buyer, you want to know there’s runway to integrate it and that after you buy it, it won’t down-cycle on you right away,” De La Vauvre added.

Advanced metals manufacturing is attracting both strategic and financial buyers. Strategics are seeking more value-added capabilities, diversification into new end markets, and higher-margin businesses. Private equity interest has increased sharply, particularly in businesses tied to infrastructure, aerospace, defense, data centers, and power generation, where specialized capabilities are difficult to build organically. Over the past two years, private equity players began developing new theses focused on participating in the “Made in America” manufacturing movement, which started during the COVID supply chain issues and includes metal component manufacturing. The high involvement of both strategic and financial buyers in advanced metals manufacturing has driven valuations up and created a very healthy market for players in that sector.

Put simply, metals suppliers are benefiting because a lot of capital is flowing into large, metal-intensive projects across defense, data centers, power generation, and U.S. infrastructure. A&D is benefiting from a commercial aerospace rebound, record defense demand, and the need to catch up on years of underproduction. AI, cloud computing, and the broader need for computing power are all driving companies to build more data center capacity. The last two bills under different administrations are pushing for a lot more infrastructure to be built in the U.S.”

— Hubert De La Vauvre, Director

In the service center sector, strategic buyers continue to dominate the market, which has a structural need for consolidation, in tandem with two recent large transactions/mergers (Ryerson/Olympic Steel and Worthington Steel/Kloeckner). Other large players continue to view acquisitions as a way to expand geographically, stay competitive, broaden product offerings, and add processing capabilities, which has been encouraging for smaller and mid-sized players looking to exit.

Tubing is another subsector of the metals value chain experiencing consolidation and the massive opportunity from the “data center effect.” The recently announced acquisition of structural and mechanical steel tubing manufacturer Hanna Steel Corporation by Bull Moose Tube Company expands Bull Moose’s reach into the rapidly growing data center market. Large-volume pipe production is benefiting from the explosive demand during the rapid buildout. Bull Moose serves diverse end markets, including commercial construction, infrastructure, fire protection, heavy equipment, transportation, and engineered products. BGL is the exclusive financial advisor to Bull Moose in the acquisition. “The combination of Bull Moose Tube and Hanna Steel creates another major player in the tubing industry, which has needed consolidation for many years,” said Vince Pappalardo, Managing Director and leader of BGL’s Metals & Advanced Metals Manufacturing group. “These two customer-focused organizations are a perfect fit that will benefit all involved, including customers, suppliers, and employees.”

Financing conditions are also helping. Lenders remain active, with asset-based lending still important in service center transactions and cash flow or hybrid structures often used for advanced metals manufacturing businesses. The availability of capital is supporting momentum, especially as buyers look for platforms or add-ons with exposure to higher-growth markets.

After a period of hesitation, the metals M&A market appears to have regained its footing. “I think the next 12 to 18 months should be a very strong period for metals M&A. The backdrop is much more favorable than it was a year ago. Performance is improving, sellers are more confident, buyers are reengaging, and the need for consolidation remains clear. When you combine that with meaningful demand visibility, it creates a healthier environment for deal activity, especially for companies with differentiated capabilities and value-added services,” said Pappalardo.

About BGL’s Metals & Advanced Metals Manufacturing Investment Banking Team

BGL’s Metals & Advanced Metals Manufacturing investment banking team leverages an extensive network of relationships with the sector’s most acquisitive strategic buyers to help our clients maximize the value of their transactions. Please reach out via our contact form to learn more.

Meghan Welch quoted in, “Sensor technology: The next evolution in an environment of advancing threat capabilities,” Military + Aerospace Electronics

Military + Aerospace Electronics June 2026

BGL Managing Director Meghan Welch, who is a senior member of the firm’s Aerospace, Defense & Government Services investment banking team, recently spoke with Military + Aerospace Electronics about how rising demand for faster, more connected, and more resilient defense systems is shaping the next phase of innovation across the sector.

In the article, Meghan also highlighted how defense technologies that improve speed, accuracy, and decision-making are influencing the M&A landscape, with continued interest in companies that support modernization, readiness, and the broader defense technology ecosystem.

For all of Meghan’s insights, read the complete article on the Military + Aerospace Electronics website (subscription required).