BUILDING PRODUCTS & MATERIALS...INDUSTRY UPDATE │ AUGUST 2016 As of August 15, 2016 Building...
Transcript of BUILDING PRODUCTS & MATERIALS...INDUSTRY UPDATE │ AUGUST 2016 As of August 15, 2016 Building...
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BUILDING PRODUCTS & MATERIALSINDUSTRY UPDATE │ AUGUST 2016
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BUILDING PRODUCTS & MATERIALS GROUP OVERVIEW
1
CONTENTS
WHAT WE’RE READING
PUBLIC MARKETS
PUBLIC COMPARABLES
M&A ACTIVITY
CONTACTS
Mike HoganManaging Director
[email protected]+1 (804) 915-0104
Ryan NelsonManaging [email protected]+1 (804) 915-0121
Trey PackardVice [email protected]+1 (804) 887-6016
INTRODUCTION
Harris Williams & Co. is pleased to present our Building Products and MaterialsIndustry Update for August 2016. This report provides commentary and analysis oncurrent capital market trends and merger and acquisition dynamics within theglobal building products and materials industry.
We hope you find this edition helpful and encourage you to contact us directly ifyou would like to discuss our perspective on current industry trends and M&Aopportunities or our relevant industry experience.
BUILDING PRODUCTS & MATERIALS
INDUSTRY UPDATE │ AUGUST 2016
OUR PRACTICE
Harris Williams & Co. is a leading advisor to the building products and materialsindustry. Our significant experience covers a broad range of end markets,industries, and business models.
Aggregates
Aluminum
Asphalt
Bricks
Clay
Glass
Precast / Ready-Mix
Concrete
Steel
Stone
Acoustical
Cabinets and
Countertops
Carpet and Flooring
Gypsum / Wallboard
Electrical Fixtures
HVAC
Lumber
Plumbing Fixtures
Roofing
Siding
Tools and Hardware
Windows and Doors
Architectural and
Engineering
Installation and
Contracting
Lumber and
Hardware
Plumbing
Roofing and Siding
Site Development
Wallboard
Construction
MaterialsBuilding Products
Distribution &
Services
www.harriswilliams.com
Construction
Materials
Building
Products
Distribution &
Services has been acquired by
a portfolio company of
Select Atlanta, Georgia
aggregates assets of LaFarge
SA have been acquired byhas been acquired by
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has been acquired by
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has been acquired by
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has been acquired by
has been acquired by
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has been acquired by
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has been acquired by
has been acquired by
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a portfolio company of
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&
has been acquired by
a portfolio company of
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a portfolio company of
has been acquired by
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WHAT WE’RE READING
2
BUILDER CONFIDENCE RISES TWO POINTS IN AUGUST
ABC, AIA AND NAHB ECONOMISTS PREDICT INDUSTRY GROWTH THROUGH 2017
ZILLOW: MORE AMERICANS CHOOSING TO RENT 'LONGER THAN EVER BEFORE'
N.Y. FED: CONSUMER HOME PRICE EXPECTATIONS RISE TO 13-MONTH HIGH
Construction Dive 8/15/2016
Real estate website Zillow reported that, in the country's largest housing markets, nearly 14% of renters with goodcredit and who can afford to buy a home are passing on homeownership.
Many younger renters are putting off a family and children, delaying their need for a home, and hot job markets areattracting well-paid renters who take their time before deciding to buy in the area.
Read the full article here.
BUILDING PRODUCTS & MATERIALS
INDUSTRY UPDATE │ AUGUST 2016
CONSTRUCTION INDUSTRY EMPLOYMENT CONTINUES TO SHRINK
NAHB 8/15/2016
Builder confidence in the market for newly constructed single-family homes rose two points in August to 60 from adownwardly revised reading of 58 in July on the National Association of Home Builders/Wells Fargo Housing MarketIndex (HMI).
“Builder confidence remains solid in the aftermath of weak GDP reports that were offset by positive job growth inJuly,” said NAHB Chief Economist Robert Dietz. “Historically low mortgage rates, increased household formations anda firming labor market will help keep housing on an upward path during the rest of the year.”
Read the full article here.
Builder 8/8/2016
Consumers expect median home prices for the next 12 months to rise 3.3%, the highest in 13 months, according to theFederal Reserve Bank of New York's July Survey of Consumer Expectations. July's result is a 19-basis point increase fromJune's reading of 3.11%, and a 15-basis point gain from July 2015.
Future median home prices trended up during the Spring sales season until the passage of Brexit in June, when fearsrose that the U.S. housing market could suffer from possible global economic turmoil. But consumer expectations haveshow signs of picking up again amid good news from the labor market.
Read the full article here.
Builder 8/10/2016
Construction openings inched up in June 2016 to a seasonally adjusted rate of 3.0%, after three consecutive monthsof decline, according to the Job Openings and Labor Turnover Survey data released by the Bureau of Labor Statistics.
June's numbers are a 20-basis-point increase from the upwardly revised rate of 2.8% reported in May, and 25% higherthan levels seen a year prior. Construction openings are slightly below the nine-year high of 3.1% in March 2016, butare close to levels last seen in February 2007.
Read the full article here.
NAHB 8/15/2016
Associated Builders and Contractors (ABC), the American Institute of Architects (AIA), and the National Association ofHome Builders (NAHB) are predicting continued growth for the construction industry in 2017.
“Nonresidential construction spending growth will continue into the next year with an estimated increase in the rangeof 3 to 4 percent,” said ABC Chief Economist Anirban Basu. “Growth will continue to be led by privately financedprojects, with commercial construction continuing to lead the way. Energy-related construction will become less of adrag in 2017, while public spending will continue to be lackluster.”
Read the full article here.
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PUBLIC MARKETS
BUILDING PRODUCTS & MATERIALS
INDUSTRY UPDATE │ AUGUST 2016
3
MEDIAN TEV / 2016E EBITDA
MEDIAN REVENUE GROWTH (2016E – 2017P)
MEDIAN EBITDA MARGIN (2012 – 2016E) MEDIAN EBITDA MARGIN (2016E – 2017P)
MEDIAN CAPEX / 2016E REVENUE
MEDIAN REVENUE GROWTH (2012 – 2016E)
HISTORICAL STOCK PRICES (AUGUST 15TH, 2011 – AUGUST 15TH, 2016)
HISTORICAL MEDIAN TEV / NTM EBITDA (AUGUST 15TH, 2011 – AUGUST 15TH, 2016)
100
140
180
220
260
300
340 Building Products Index
Building Products Distributors Index
Construction Materials Index
S&P 500 Index
6.0x
7.0x
8.0x
9.0x
10.0x
11.0x
12.0x
13.0x
Building Products Index
Building Products Distributors Index
Construction Materials Index
S&P 500 Index
9.7x
8.9x
10.2x
Construction Materials
Building Products Distributors
Building Products
9.2%
8.1%
6.9%
Construction Materials
Building Products Distributors
Building Products
9.6%
8.8%
5.6%
Construction Materials
Building Products Distributors
Building Products
19.4%
6.7%
16.0%
Construction Materials
Building Products Distributors
Building Products
14.9%
4.9%
12.5%
Construction Materials
Building Products Distributors
Building Products
6.0%
1.1%
3.3%
Construction Materials
Building Products Distributors
Building Products
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PUBLIC COMPARABLES
4
BUILDING PRODUCTS
BUILDING PRODUCTS & MATERIALS
INDUSTRY UPDATE │ AUGUST 2016
As of August 15, 2016
Building Products
Stock Performance
Current % of 2016E TEV / EBITDA EBITDA
($ in millions except per share data) Price LTM High Mkt. Cap TEV Rev. EBITDA Current 2016E 2017P
Windows & Doors
Masonite International Corp. $69.08 95.0% $1,863 $2,577 $2,011 $248 12.3% 10.4x 8.9x
Ply Gem Holdings, Inc. 14.49 90.1% 854 1,883 1,927 232 12.0% 8.1x 7.1x
Tyman Plc 3.66 73.6% 749 811 564 94 16.6% 8.6x 7.7x
Quanex Building Products Corporation 20.04 92.5% 641 971 959 116 12.1% 8.3x 7.5x
PGT, Inc. 11.54 82.1% 556 804 459 79 17.2% 10.2x 8.5x
Median 90.1% $959 $116 12.3% 8.6x 7.7x
Roofing, Decking & Siding
Kingspan Group Plc $24.48 84.8% $4,675 $4,785 $3,418 $399 11.7% 12.0x 11.5x
USG Corporation 28.27 86.0% 3,538 5,536 3,974 654 16.5% 8.5x 7.3x
Trex Company, Inc. 60.60 99.3% 1,176 1,824 476 123 25.9% 14.8x 12.9x
Continental Building Products, Inc. 22.29 90.0% 729 1,154 454 137 30.2% 8.4x 8.1x
Median 88.0% $1,947 $268 21.2% 10.2x 9.8x
Cabinets, Plumbing / HVAC
Masco Corporation $36.15 96.7% $9,353 $14,046 $7,431 $1,235 16.6% 11.4x 10.4x
Fortune Brands Home & Security, Inc. 63.88 99.1% 8,875 11,368 5,071 786 15.5% 14.5x 12.7x
Lennox International Inc. 157.76 98.8% 5,580 7,978 3,618 521 14.4% 15.3x 13.9x
American Woodmark Corporation 75.20 83.7% 1,186 1,060 1,057 117 11.1% 9.0x 8.0x
Median 97.8% $4,344 $654 15.0% 12.9x 11.6x
Hardware
ASSA ABLOY AB $22.38 99.3% $23,452 $27,688 $8,502 $1,520 17.9% 18.2x 16.4x
Simpson Manufacturing Co., Inc. 41.89 99.5% 1,645 1,790 858 170 19.8% 10.5x 9.7x
Richelieu Hardware Ltd 20.56 92.1% 1,044 1,212 658 73 11.1% 16.6x 15.0x
Median 99.3% $858 $170 17.9% 16.6x 15.0x
Glass / Building Systems
Owens Corning $54.09 92.2% $5,451 $8,546 $5,631 $1,038 18.4% 8.2x 7.7x
Apogee Enterprises, Inc. 47.43 81.3% 1,130 1,326 1,078 156 14.4% 8.5x 7.4x
NCI Building Systems, Inc. 17.33 97.6% 775 1,604 1,678 161 9.6% 10.0x 8.6x
Median 92.2% $1,678 $161 14.4% 8.5x 7.7x
Flooring
Mohawk Industries, Inc. $212.77 99.0% $14,001 $18,742 $8,915 $1,687 18.9% 11.1x 10.4x
Armstrong World Industries, Inc. 45.22 74.5% 2,532 3,306 1,356 324 23.9% 10.2x 9.6x
Interface, Inc. 16.70 63.5% 1,261 1,228 980 148 15.1% 8.3x 7.4x
Median 74.5% $1,356 $324 18.9% 10.2x 9.6x
Overall Median 92.1% $1,517 $201 16.0% 10.2x 8.8x
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PUBLIC COMPARABLES
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BUILDING PRODUCTS DISTRIBUTORS
BUILDING PRODUCTS & MATERIALS
INDUSTRY UPDATE │ AUGUST 2016
As of August 15, 2016
Building Products Distributors
Stock Performance
Current % of 2016E TEV / EBITDA EBITDA
($ in millions except per share data) Price LTM High Mkt. Cap TEV Rev. EBITDA Current 2016E 2017P
Wolseley plc $5.61 81.9% $17,412 $16,106 $19,378 $1,525 7.9% 10.6x 10.1x
HD Supply Holdings, Inc. 36.65 99.1% 5,257 11,391 7,548 960 12.7% 11.9x 10.9x
Beacon Roofing Supply, Inc. 46.31 94.6% 1,618 3,961 4,216 353 8.4% 11.2x 10.1x
Builders FirstSource, Inc. 12.45 74.6% 1,216 3,345 6,411 412 6.4% 8.1x 6.7x
BMC Stock Holdings, Inc. 20.19 93.9% 1,094 1,736 3,168 197 6.2% 8.8x 7.3x
Hardwoods Distribution Inc. 15.02 100.0% 217 282 640 51 8.0% 5.5x 4.3x
CanWel Building Materials Group Ltd. 5.07 95.3% 146 378 787 43 5.4% 8.8x 7.6x
Huttig Building Products, Inc. 6.07 86.7% 95 224 710 21 3.0% 10.7x 8.3x
Goodfellow Inc. 8.78 93.0% 66 152 452 17 3.8% 8.9x 8.4x
Overall Median 93.9% $3,168 $197 6.4% 8.9x 8.3x
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PUBLIC COMPARABLES
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CONSTRUCTION MATERIALS
BUILDING PRODUCTS & MATERIALS
INDUSTRY UPDATE │ AUGUST 2016
As of August 15, 2016
Construction Materials
Stock Performance
Current % of 2016E TEV / EBITDA EBITDA
($ in millions except per share data) Price LTM High Mkt. Cap TEV Rev. EBITDA Current 2016E 2017P
Aggregates and Cement
LafargeHolcim Ltd. $53.08 81.6% $30,430 $55,231 $29,885 $6,374 21.3% 8.7x 8.6x
CRH Plc 32.18 99.5% 23,708 33,887 30,987 3,465 11.2% 9.8x 8.9x
HeidelbergCement AG 91.26 99.4% 15,437 24,891 17,113 3,328 19.4% 7.5x 6.5x
Vulcan Materials Company 119.77 94.2% 12,647 18,107 3,867 1,088 28.1% 16.6x 13.3x
Martin Marietta Materials, Inc. 199.46 96.7% 8,807 14,487 3,650 1,020 27.9% 14.2x 11.8x
Eagle Materials Inc. 83.29 95.1% 3,402 4,531 1,212 419 34.6% 10.8x 9.4x
Summit Materials, Inc. 20.64 75.1% 1,197 2,932 1,513 367 24.3% 8.0x 6.9x
Median 95.1% $3,867 $1,088 24.3% 9.8x 8.9x
Heavy Construction Materials
James Hardie Industries PLC $16.98 98.5% $6,122 $7,944 $1,895 $481 25.4% 16.5x 14.6x
Boral Limited 5.34 99.5% 3,436 4,803 3,283 472 14.4% 10.2x 9.5x
Headwaters Incorporated 19.93 91.9% 1,389 1,986 983 190 19.3% 10.5x 8.4x
U.S. Concrete, Inc. 57.43 82.4% 783 1,197 1,185 161 13.6% 7.4x 6.1x
Median 95.2% $1,540 $331 16.8% 10.3x 9.0x
Cabinets, Plumbing / HVAC
Weyerhaeuser Company $31.90 96.2% $15,304 $32,736 $6,843 $1,730 25.3% 18.9x 16.0x
West Fraser Timber Co. Ltd. 34.64 82.1% 3,118 3,223 3,434 439 12.8% 7.3x 5.7x
Louisiana-Pacific Corporation 19.16 91.4% 2,575 3,055 2,213 325 14.7% 9.4x 10.0x
Canfor Corporation 12.21 71.2% 2,093 2,161 3,236 376 11.6% 5.8x 4.9x
Universal Forest Products, Inc. 106.70 97.1% 1,387 2,141 3,106 212 6.8% 10.1x 9.4x
Norbord Inc. 24.72 96.0% 1,657 2,862 1,757 359 20.4% 8.0x 7.6x
Boise Cascade Co. 25.47 76.8% 991 1,361 3,954 174 4.4% 7.8x 6.5x
Median 91.4% $3,236 $359 12.8% 8.0x 7.6x
Overall Median 94.6% $3,260 $429 19.4% 9.6x 8.7x
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M&A TRANSACTIONS
7
BUILDING PRODUCTS & MATERIALS
INDUSTRY UPDATE │ AUGUST 2016
Announced
DateTarget Vertical Business Description Acquirer
8/15/2016 Tecta America Building Products Prov ider of commercial roofing serv ices in the US offering installation,
replacement and repair serv ices.
ONCAP
8/11/2016 Absolute Coatings, Inc. Building Products Prov ides wood floor installation serv ices. Huron Capital Partners
8/10/2016 Jenna Concrete Corp. Construction Materials Produces ready-mix concrete. U.S. Concrete, Inc.
8/9/2016 SensoCrete, Inc. Construction Materials Prov ides ready mix concrete serv ices. The firm's technology Verifi
system that monitors and controls the final stages of the manufacturing
process while the concrete is in transit and before it is poured.
GCP Applied Technologies,
Inc.
8/9/2016 Griplock Systems Building Products Designs and markets adjustable cable suspension systems primarily for
the linear fluorescent lighting and theatrical rigging industries.
Spell Capital Partners
8/8/2016 AquiSense Technologies Building Products Manufactures UV-C LED systems to disinfect water, air, and surfaces
without the use of chemicals or Mercury.
Nikkiso America, Inc.
8/4/2016 Door Engineering &
Manufacturing
Building Products Prov ides customized industrial, commercial, av iation, and specialty door
solutions.
Audax Group, Inc.
8/3/2016 Dectron, Inc. Building Products Global prov ider of highly-engineered custom and semi-custom
dehumidification, air quality, and energy recovery solutions primarily for
indoor pools.
Specified Air Solutions
8/2/2016 Krestmark Industries Building Products Manufacturer of v inyl and alumninum windows and patio doors. Headwaters, Inc.
8/1/2016 Wind Mill Slatwall Products Building Products Wind Mill Slatwall Products manufactures slatwall, custom retail display
products, fixtures, and wood component parts.
Amerhart Limited
7/27/2016 Reilly Windows & Doors Building Products Manufacturer and designer of custom window walls and doors. Pella Corporation
7/21/2016 PPG Flat Glass Unit Building Products Manufactures flat glass. Vitro, S.A.B. de C.V.
7/18/2016 Alltemp Products Building Products Manufactures heating, ventilating, and air conditioning equipment. DiversiTech Corp; The
Jordan Company
7/15/2016 E.O. Wood Building Products E.O. Wood specializes in the fabrication of Rigid Wrap® pipe and tank
insulation systems.
Distribution International,
Inc.
7/7/2016 Applied Polymerics, Inc. Building Products Manufactures supplies and installs specialist construction products,
including bridge expansion joints, concrete repair compounds,
protective coatings, and pavement preservation products.
RPM International, Inc.
7/7/2016 Marketing Associates, Inc.
(North Carolina)
Building Products Manufactures, supplies, and installs specialist construction products,
including bridge expansion joints, concrete repair compounds,
protective coatings, and pavement preservation products.
RPM International, Inc.
7/6/2016 Nortek, Inc. Building Products Manufactures and distributes building ventilation products for residential
and commercial applications.
Melrose Industries Plc
7/6/2016 RockWise LLC Building Products Supplies drywall and stucco to professional contractors in Arizona and
Colorado.
GMS, Inc.
7/5/2016 Superior Plus Building Products
Distribution
Distributes construction products, including commercial and industrial
insulation, specialty walls, and ceiling products.
Lone Star Funds
6/29/2016 Eastern Industries Corp. Construction Materials The company provides building supplies, hot-mix asphalt, masonry block,
ready-mix concrete, road oils, stone and other construction materials.
Precision Punch Corp.
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M&A TRANSACTIONS
8
BUILDING PRODUCTS & MATERIALS
INDUSTRY UPDATE │ AUGUST 2016
Announced
DateTarget Vertical Business Description Acquirer
6/27/2016 NYCON Supply Corp. Construction Materials Supplies concrete products for construction, municipal work, road
construction, city sidewalks, and homeowners projects.
U.S. Concrete, Inc.
6/22/2016 Lake States Lumber, Inc. Building Products
Distribution
Wholesales and distributes building materials. I t offers manufacturing,
factory refinishing, and wood preserv ing.
Cedar Creek, Inc.
6/15/2016 The Bilco Co. Building Products Manufactures building products. I t offers roof hatches, smoke vents,
floor access doors, safety products, intrusion detection, bilco basement
doors, egress window wells, and perm entry entrance.
Tyman Plc
6/13/2016 Ennis-Flint Building Products Ennis-Flint is the world leader in pavement markings and traffic safety
solutions.
Olympus Partners
6/13/2016 Rugby Architectural
Building Products
Building Products
Distribution
Rugby Architectural Building Products distributes non-structural
architectural grade building products to customers that supply end-
products to the commercial market.
Hardwoods Distribution
6/13/2016 Lumotech, Certain assets
in Europe
Building Products Lumotech is a manufacturer of specialty LED products with a focus on
rechargeable, emergency lighting.
Fulham Company Group
6/10/2016 Generation Brands Building Products Generation Brands is a leading designer of decorative and functional
lighting products serv ing residential and commercial construction
markets.
AEA Investors
6/10/2016 Panolam Surface Solutions Building Products Panolam Surface Systems is a designer and manufacturer of highly-
engineered, integrated surface solutions including high-pressure
laminates, thermally-fused laminates, and other specialty products.
Insight Equity
6/8/2016 Exteria Building Products Building Products Exteria Building Products LLC manufactures sides, windows, fascia,
roofing, and gutters serv ices. I ts products include cape cod perfection,
scalloped perfection, hand-split shake, and cedar pride.
Novik Inc.
6/7/2016 Monofrax Building Products Monofrax is engaged in the manufacturing of fused cast refractory for
glass manufacturers.
Callista Private Equity
6/6/2016 KITH Kitchens LLC Building Products KITH Kitchens LLC provides customizable kitchen and bath cabinets. I t
offers full lines of both framed and frameless cabinetry with an expertise
in hand-painted finishes.
Pfingsten Partners LLC
6/2/2016 Johnson Insulation, Certain
assets
Building Products
Distribution
Johnson Insulation specializes in laminating metal building insulation. Distribution International
6/1/2016 Raymond Building Supply
Corp.
Building Products
Distribution
Raymond Building Supply Corp. supplies residential and commercial
building products. I ts products include millwork, plywood, trusses ,and
Andersen windows.
U.S. LBM
6/1/2016 Woodfeathers, Inc. Building Products Woodfeathers, Inc. manufactures and supplies roofing materials to
homeowners, builders, architects, and contractors.
Beacon Roofing Supply,
Inc.
5/26/2016 Albuquerque Hardwood
Lumber Co.
Building Products
Distribution
Albuquerque Hardwood Lumber Co. wholesales and supplies wood
products. I t sells hardwood lumber, wood panels, and related
hardware.
Rugby IPD Corp
5/24/2016 TekModo Building Products TekModo is a manufacturer and seller of composite panels that are
currently being used in the walls, roofs, floors and doors of RVs, buses
and trailers.
CarbonOne Technologies
5/20/2016 Lamin-Art, Inc. Building Products Lamin-Art designs and manufactures laminates and decorative
surfaces.
Arborite
5/9/2016 Universal Building
Specialties Incorporated
Building Products
Distribution
Universal Building Specialties Incorporated distributes building products. Cedar Creek Inc.
5/6/2016 SEI Group, Inc. Building Products SEI Group, Inc. prov ides construction contracting serv ices for single
and multi-family homes.
Narrow Gauge Capital
5/4/2016 Sierra Ready Mix, LLC Construction Materials Sierra Ready Mix, LLC supplies ready mix concrete in Las Vegas,
Nevada.
Summit Materials, Inc.
PAGE |
M&A TRANSACTIONS
9
BUILDING PRODUCTS & MATERIALS
INDUSTRY UPDATE │ AUGUST 2016
Announced
DateTarget Vertical Business Description Acquirer
5/2/2016 CEMEX, S.A.B. de C.V.,
Certain assets in U.S.
Construction Materials CEMEX, S.A.B. de C.V., Certain assets in U.S. comprises cement plants,
three cement terminals, and the building materials business.
Grupo Cementos de
Chihuahua SAB de CV
5/2/2016 Fox Brothers Company Building Products
Distribution
Fox Brothers Company supplies exterior building materials for new
construction and remodeling projects in Michigan.
Beacon Roofing Supply,
Inc.
4/30/2016 Masonite Architectural
Door Company, Plant in
Fredericksburg
Building Products Masonite Architectural Door Company's plant in Fredericksburg was
acquired by The Lester Group, Inc. The plant manufactures and pre-
finishes commercial doors.
The Lester Group, Inc.
4/29/2016 Surface Encounters LLC Building Products Surface Encounters LLC fabricates granite and quartz countertops for
kitchens, bathrooms, and bars in Michigan and Indiana.
Cutting Edge Countertops
Inc.
4/18/2016 Athabasca Minerals Inc.,
DML 150166, DML 150171
And DLO 150210
Construction Materials Athabasca Minerals Inc., DML 150166, DML 150171 And DLO 150210
comprise industrial minerals deposits.
Wayfinder Corp.
4/15/2016 United States Pipe and
Foundry Company, LLC
Building Products United States Pipe and Foundry Company, LLC manufactures and sells
fabricated/grooved ductile iron pipes and fittings for water and
wastewater industries in the United States and internationally.
Forterra Building Products
4/11/2016 Fomo Products, Inc. Building Products Fomo Products, Inc. manufactures low pressure polyurethane (PU) foam
insulation, sealants, adhesives, and spray foam systems in pressurized
packaging.
ICP Adhesives and
Sealants, Inc.
4/1/2016 House Of Threads, Inc. Building Products
Distribution
House Of Threads, Inc. markets and distributes fasteners. Wurth Group Of North
America Inc.
4/5/2016 Tierra Sol Ceramic Tile Ltd. Building Products
Distribution
Tierra Sol Ceramic Tile Ltd. distributes ceramic and porcelain tiles,
glass/metal products, natural stones, and setting products to designers,
architects, contractors, and retailers.
Shnier Gesco Limited
Partnership
4/5/2016 Blue Max Materials, Inc. Construction Materials Blue Max Materials, Inc. offers a selection of landscape and hardscape
materials to professional contractors and do-it-yourself homeowners for
their landscaping needs.
SiteOne Landscape Supply,
Inc.
4/4/2016 Benbilt Building Systems LP Building Products
Distribution
Benbilt Building Systems LP is engaged in the wholesale distribution of
doors to builders and remodelers.
Huttig Building Products
Inc.
4/5/2016 Boston Cedar, Inc. Building Products
Distribution
Distributes building materials including siding, trim, decking, railing, and
millwork products.
U.S. LUMBER GROUP, LLC
4/4/2016 United Subcontractors,
Inc.
Building Products United Subcontractors, Inc. prov ides insulation, specialty, and shell
construction serv ices for residential and commercial projects.
Hennessy Capital
Acquisition Corp.
4/1/2016 L. M. Scofield Company Construction Materials L. M. Scofield Company manufactures decorative concrete products. Sika AG
4/1/2016 Strickland Bridge, Inc. Construction Materials Strickland Bridge, Inc. manufactures concrete. U.S. Concrete, Inc.
4/1/2016 Atlantic Building Products,
Inc.
Building Products
Distribution
Atlantic Building Products, Inc. is a building supply dealer that prov ides
building products to contractors and homeowners.
Beacon Roofing Supply,
Inc.
4/1/2016 LYF-TYM Building Products
Co, Inc.
Building Products LYF-TYM Building Products Co, Inc. manufactures and distributes low-
maintenance exterior building products.
Beacon Roofing Supply,
Inc.
4/1/2016 Professional Handling and
Distribution, Inc.
Building Products
Distribution
Professional Handling and Distribution, Inc. distributes drywall and
related products for commercial and residential customers in the
greater Chicagoland and Rockford areas.
GMS Inc.
3/31/2016 American Lumber
Corporation
Building Products American Lumber Corporation, also known as ALCO Doors,
manufactures interior and entry door systems for commercial and
residential use.
U.S. LBM Holdings, LLC
3/30/2016 Design and Direct Source
LLC
Building Products Design and Direct Source LLC provides floor and wall tiles, and stone
and wood products for commercial projects.
Materials Marketing
Limited
PAGE |
REPRESENTATIVE BUILDING PRODUCTS & MATERIALS TRANSACTIONS
20
BUILDING PRODUCTS & MATERIALS
INDUSTRY UPDATE │ AUGUST 2016
has been acquired by
a portfolio company of
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by has been acquired by
a portfolio company of
has been acquired by
Select Atlanta,
Georgia aggregates
assets of LaFarge SA
have been acquired
by
has been acquired by
has purchased
certain assets of
has been acquired by
a portfolio company of
has been acquired by
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have been acquired by
The Wichita, Kansas
aggregates, concrete,
asphalt, and paving
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has been acquired by
has completed a
balance sheet
restructuring and
recapitalization
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Industries, LLC
Private Investors
has been acquired by
a portfolio company of
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has been acquired by
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Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities.Our clients benefit from our deep-sector experience, integrated industry intelligence, andcollaboration across the firm, and our commitment to learning what makes them unique. For moreinformation, visit our website.
OUR FIRM
BUILDING PRODUCTS & MATERIALS
INDUSTRY UPDATE │ AUGUST 2016
21
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HARRIS WILLIAMS & CO.
12
BUILDING PRODUCTS & MATERIALS
INDUSTRY UPDATE │ AUGUST 2016
DISCLOSURES
SOURCES
Harris Williams & Co. (www.harriswilliams.com) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services.
Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS.
The information and views contained in this report were prepared by Harris Williams & Co. (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable, but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The financial instruments discussed in this report may not be suitable for all investors, and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.
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