BGL Building Products Insider

Housing Gains Fuel M&A in Residential Building Products

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.

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ANDREW K. PETRYK
Managing Director

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.

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