Building Products M&A Activity to Grow in 2025

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CLEVELAND, Jan. 30, 2025 ~ According to a recent industry report released by Brown Gibbons Lang & Company (BGL), the building products M&A market is expected to see continued growth in the coming years. The report, titled "BGL Building Products Insider," was published by BGL's investment banking team and highlights the favorable long-term fundamentals of the U.S. housing market as a key factor driving this growth.

One of the main factors contributing to this positive outlook is the aging housing stock in the nation and the growing deficit of affordable housing. This has created a need for an overdue correction in the market, setting the stage for potential opportunities for investors.

In addition to providing insights into the broader housing market, BGL's report also delves into key trends impacting four of the industry's largest sub-sectors: window & door, flooring, cabinetry, and roofing. These trends include an increase in strategic buyers who are actively seeking accretive acquisitions to enhance growth and diversify their product portfolios.

Private equity is also expected to play a significant role in the building products M&A market, with over $1 trillion of available capital and a robust direct lending market. This will likely lead to increased activity from both buyers and sellers in this sector.

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Another trend highlighted by BGL is fragmentation within these sub-sectors, with many small to mid-sized local and regional players. This creates opportunities for consolidation as smaller players navigate an evolving regulatory and trade environment under the new Administration.

BGL's Building Products investment banking team has extensive experience in residential, commercial construction, and infrastructure segments. They have successfully completed transactions across a wide range of end markets, including basic building materials such as aggregates, lumber, pavers, pre-cast products, fenestration extrusions, glass fabrications, curtain wall systems, and highly engineered specialty coatings. Their expertise also extends to key interior and exterior products such as windows and doors, flooring, cabinetry, and other essential building components.

With the favorable long-term fundamentals of the U.S. housing market and the potential for consolidation within the building products industry, BGL's report suggests that the M&A market is poised for continued growth in the coming years. Investors and industry players alike should keep a close eye on these trends and opportunities in order to capitalize on potential deals and partnerships. For more information, interested parties can download and read the full "BGL Building Products Insider" report at https://bit.ly/bglBuildingProductsInsiderJan2025.
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