Cleveland – February 27, 2018 – 2017 was an active year for deal making in the window and door industry, fueled by economic growth, a strong capital markets environment, and low interest rates, according to Brown Gibbons Lang & Company.
Andrew Petryk, Head of BGL’s Industrials & Building Products Group, discusses the deal market in the January/February edition of Window & Door. Click here to access the article.
2018 is off to a robust start, headlined by the proposed acquisition of Ply Gem Holdings by Clayton, Dubilier & Rice (CD&R) in a $2.3 billion take-private transaction, announced in January. Concurrent with the acquisition, CD&R agreed to acquire Atrium Windows and Doors, stating plans to merge the two companies to create a powerhouse in the North American building products market with more than $2.4 billion in revenue. Ply Gem is valued at a multiple of 10.5x EBITDA, indicative of value assigned to growth platforms in today’s market.
We expect M&A activity to increase in 2018, with corporate and private equity buyers maintaining an aggressive posture. Corporates are looking to leverage their buying power and synergies in search of accretive acquisitions to boost topline growth. Private equity funds will continue to be motivated by a sense of urgency to deploy capital, with acquisitive growth central to their investment thesis.
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 Chicago, Cleveland, 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.