1. No category

Building and Infrastructure Market Summary
Q1 2015
Executive Summary – Winter 2015
Message from Lincoln
This semi-annual publication by Lincoln International’s Building and Infrastructure Group focuses on sector valuations, market dynamics, M&A trends
and events of interest to owners and managers of building products and construction businesses.
At Lincoln International, our goal is to be the best M&A and related services advisory firm in the world focused on the mid-market. Within the building
and infrastructure sector, our global footprint, deal activity and industry knowledge allow us to successfully provide unbiased M&A advisory services to
companies.
.
Construction market update
In a year where housing starts were up compared to the previous year, there were multiple signs that a recovery in the construction market is
underway. In 2014, market indicators such as public company valuations, corporate earnings and M&A activity continued to increase across most
building products verticals. Strong equity market performance (the Lincoln International building index was up 8.7% globally in 2014) has been driven
not only by low interest rates and increased construction activity, but also from heightened expectations for continued revenue and earnings growth.
The rise in single-family housing starts, recent industry momentum and increasing overall construction activity continue to support equity valuations in
building products. The consensus 2015 housing starts forecast of 1.2 million, 20% above current levels, will lead to continued enthusiasm for the sector
in 2015. Moreover, repair and remodel activity continued to recover and now equals pre-recession spending levels.
The non-residential construction cycle, which typically trails the residential cycle by 18 to 24 months, showed signs of a recovery in 2014. While still
below pre-recession highs, non-residential construction spending showed positive year over year growth of 4.0% in 2014, a trend most investors expect
to continue in 2015.
Overall, while the recovery continuers to be slower than expected, recent construction data gives investors comfort that construction activity will
maintain its positive momentum in 2015, supporting above average multiples and M&A activity.
Note: 2015 starts forecast is an average of multiple estimates
2
Residential Construction – Key Indicators
Housing starts (annual rate not seasonally adjusted, units in thousands)
2,500
2,000
1,500
1,848
1,569
1,603
338
329
1,705
349
1,956
345
Multi-family housing starts led the
housing recovery in 2014
2,068
1,801
352
336
346
1,355
309
500
1,273
1,231
1,359
1,499
1,611
1,716
780
283
1,465
995
925
905
1,000
1,046
622
554
587
609
109
115
178
445
471
431
Dec-09
Dec-10
Dec-11
307
352
535
618
643
Dec-12
Dec-13
Nov-14
LTM
245
0
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Single Family Starts
Source: Census Bureau
Existing home sales (units in thousands and months)
Current
Existing Sales: 4,930
Months Supply: 5.1
7,000
12
8
5,000
6
4,000
4
3,000
2
Existing Home Sales
Multi-Family Starts
14
10
6,000
Dec-08
New home sales (units in thousands and months)
Existing Months Supply
Existing Home Sales
8,000
Dec-07
1,600
1,400
1,200
1,000
800
600
400
200
0
Current
New Sales: 438
Months Supply: 5.8
Existing home sales reached 4.9 million in 2014 while existing months supply,
which peaked at 11.9 months in July 2010, currently stands at 5.1 months
12
10
8
6
4
2
New Home Sales
Existing Months Supply
Source: NAR
14
New Months Supply
Dec-01
New Home Sales
Dec-00
New Months Supply
Source: Census Bureau
New home sales and new months supply have stabilized
3
Residential Construction – Regional Performance
Midwest housing starts (LTM units in thousands)
Northeast housing starts (LTM units in thousands)
250
400
350
10 Year Average: 184
Current: 161
250
200
150
200
Housing Starts
Housing Starts
300
100
10 Year Average: 115
Current: 108
150
100
50
50
0
Nov-04
Nov-06
Nov-08
Nov-10
Nov-12
Source: Census Bureau
1000
500
10 Year Average: 553
Current: 492
800
600
400
Housing Starts
600
Nov-10
Nov-12
Nov-14
10 Year Average: 265
Current: 234
400
300
200
100
200
Source: Census Bureau
Nov-08
West housing starts (LTM units in thousands)
1200
0
Nov-04
Nov-06
Source: Census Bureau
South housing starts (LTM units in thousands)
Housing Starts
0
Nov-04
Nov-14
Nov-06
Nov-08
Nov-10
Nov-12
Nov-14
0
Nov-04
Nov-06
Nov-08
Nov-10
Nov-12
Nov-14
Source: Census Bureau
4
Residential Construction – Starts Relative to Macro Economic Indicators
2,300
2,100
Housing Starts
1,900
1,700
1,500
1,300
1,100
900
700
500
2004
2005
2006
2007
2008
2009
Housing Starts
Source: Census Bureau, BLS
0.0%
1.0%
Residential construction
2.0%
activity remains highly
correlated to
Current
3.0%
unemployment
Starts: 995
4.0%
Unemployment Rate: 5.8%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
11.0%
2010
2011
2012
2013
2014
Inverted Unemployment Rate
Housing starts vs. unemployment rate (LTM units in thousands)
Unemployment Rate
2,500
500
2,000
250
1,500
0
1,000
-250
500
0
2004
Current
Starts: 995
Change in Unemployment: 321
2005
2006
2007
2008
2009
Change in Non-Farm Payrolls
2010
2011
2012
2013
-500
Change in Non-Farm Payrolls
Housing Starts
Housing starts vs. change in non-farm payrolls (LTM units in thousands and jobs in thousands)
-750
2014
Housing Starts
Source: Census Bureau, BLS
5
Non-Residential Construction – Key Indicators
Construction put in place: non-residential vs. residential construction ($ in millions)
Non-residential construction has begun to
recover but remains significantly below its prerecession highs
$1,400
$1,178
$1,200
$1,153
$1,109
$1,038
$994
$948
$1,000
$856
$670
$800
$417
$600
$509
$570
$418
$466
$509
$584
$440
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
$698
$691
$975
$369
$358
$817
$239
$256
$319
$578
$541
$561
$564
$592
$617
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Nov 2014
LTM
$254
$439
$961
$883
$780
$296
$572
$400
$200
$832
$0
Dec-07
Dec-08
Non-Residential
Source: Census Bureau
Non-residential construction spending by segment
Residential
Architectural Billings Index
100%
60
75%
55
50%
50
45
25%
Current: 50.9
Base: 50.0
40
The Architectural Billings
Index shows increased
enthusiasm
0%
35
Infrastructure
Manufacturing
Office
Commercial
Healthcare
Lodging
Since the recession, infrastructure spending has remained relatively constant
and comprises a larger percentage of non-residential activity
30
2002
2004
2006
2008
2010
2012
2014
Source: AIA
Source: Census Bureau
6
Repair and Remodel – Key Indicators
Residential remodeling spending ($ in millions)
$160
$145
The repair and remodel
market is back to prerecession levels
$140
$131
$98
$100
17%
$80
$57
$66
$67
$72
$75
$81
$133
40.0%
$112
30.0%
$85
20.0%
15%
14%
8%
5%
4%
$40
$112
$126
$100
15%
9%
$121
$120
$115
$120
$60
50.0%
$144
$139
10.0%
11%
8%
4%
3%
0%
$20
-4%
-14%
2007
2008
6%
8%
0.0%
0%
-10.0%
-7%
$0
-20.0%
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2009
2010
2011
2012
2013
2014E
Source: JCHS, U.S. Census Bureau
Home Depot vs. Lowe’s quarterly same store sales growth
Remodeling market index
15%
60
10%
50
5%
40
0%
30
-5%
Current Market: 57
Future Market: 58
20
Current
Home Depot: 5.2%
Lowe’s: 5.1%
-10%
-15%
10
Q1
Q1
Q1
Q1
Q1
Q1
Q1
Q1
Q1
Q1
Q1
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Current Market Conditions
Source: NAHB
Q1
Q1
Q1
Q1
Q1
Q1
Q1
Q1
Q1
Q1
Q1
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Home Depot
Future Market Indicators
Lowe's
Source: Company filings
7
Building Products Trading Multiples
Building products index EV / LTM EBITDA multiples over time
Heightened investor
expectations for continued
growth have driven higher
trading multiples
14x
13x
12x
11x
10x
9x
Average: 8.7x
Current: 11.1x
8x
7x
6x
Jan-96
Jan-98
Jan-00
Jan-02
Jan-04
Jan-06
Jan-08
Jan-10
Jan-12
Jan-14
Source: CapIQ as of December 31, 2014
Note: Index is calculated using an average multiple of 70 publicly traded building products companies
Building products / S&P 500 Multiple Relationship over time
1.4
Historically, building products assets have traded at
a discount to the broader S&P index. Currently, the
index is trading at a 8% premium
1.3
1.2
1.1
1.0
0.9
0.8
Average: 0.86
Current: 1.08
0.7
0.6
0.5
0.4
Jan-96
Jan-98
Jan-00
Jan-02
Jan-04
Jan-06
Jan-08
Jan-10
Jan-12
Jan-14
Source: CapIQ as of December 31, 2014
8
Building Products Stock Performance
Building products index EV vs. housing permits over time
200
150
Current
EV: 192, Permits: 61
100
Base: 100
50
0
Feb-01
Heightened investor expectations have enabled
stock prices to outperform housing activity
Feb-02
Feb-03
Feb-04
Feb-05
Feb-06
Feb-07
Feb-08
Permits
Feb-09
Feb-10
Feb-11
Feb-12
Feb-13
Feb-14
EV
Source: Census Bureau and CapIQ as of December 31, 2014
Note: Index is weighted by EV and is rebalanced monthly (January 2001 set to 100)
Residential construction vs. non-residential construction stock price performance over time
150
Following the recession, companies more exposed to
residential construction have outperformed nonresidential companies
Base: 100
100
Current
Non-Res: 85, Res: 148
50
Dec-06
Jun-07
Dec-07
Jun-08
Dec-08
Jun-09
Dec-09
Jun-10
Non-Residential Construction
Source: CapIQ as of December 31, 2014
Note: Index is weighted by EV and is rebalanced monthly (December 2006 set to 100)
Dec-10
Jun-11
Dec-11
Jun-12
Dec-12
Jun-13
Dec-13
Jun-14
Dec-14
Residential Construction
9
Building Products Stock Performance by Vertical
Building products index EV by vertical over time
300
300
Aggregates
250
250
200
200
150
150
Current: 210
High: 282
100
50
Jan-01
250
Distributors
Jan-03
Jan-05
Jan-07
Jan-09
Jan-11
Jan-13
50
Jan-01
200
Manufacturers
200
Current: 230
High: 258
100
Jan-03
Jan-05
Jan-07
Jan-09
Jan-11
Jan-13
Retailers
150
150
100
50
Jan-01
500
Current: 192
High: 218
Jan-03
Jan-05
Jan-07
Jan-09
Jan-11
Jan-13
100
Current: 178
High: 178
50
Jan-01
300
Home Builders
400
250
300
200
200
Jan-05
Jan-07
Jan-09
Jan-11
Jan-13
Lumber
150
Current: 340
High: 452
100
0
Jan-01
Jan-03
Jan-03
Jan-05
Jan-07
Jan-09
Jan-11
Jan-13
Current: 267
High: 267
100
50
Jan-01
Jan-03
Jan-05
Jan-07
Jan-09
Jan-11
Jan-13
Source: CapIQ as of December 31, 2014
Note: Index is weighted by EV and is rebalanced monthly (January 2000 set to 100)
Many building product verticals are at or above pre-recession
highs in terms of enterprise value
10
Building Products Trading Multiples
($ in thousands except per share data)
Aggregates
CEMEX, S.A.B. de C.V.
Corporación Moctezuma, SAB de CV
CRH plc
Eagle Materials Inc.
HeidelbergCement AG
Holcim Ltd.
Lafarge S.A.
Martin Marietta Materials Inc.
Taiheiyo Cement Corp.
Titan Cement Company S.A.
Vicat SA
Vulcan Materials Company
$
Stock
Market
Enterprise
EBITDA
Net Debt /
Price
Cap
Value
Margin
LTM EBITDA
10.19
3.10
24.09
76.03
71.34
71.83
70.30
110.32
3.16
23.20
72.14
65.73
$
12,517
2,725
17,808
3,821
13,407
23,384
20,209
7,421
3,910
1,799
3,183
8,657
$
29,192
2,611
22,423
4,123
24,017
36,502
35,030
8,968
7,341
2,594
4,993
10,571
17.3%
34.2%
6.5%
26.3%
16.9%
19.4%
20.0%
21.3%
13.5%
14.9%
17.6%
18.4%
Mean
Median
Distributors
Beacon Roofing Supply, Inc.
Builders FirstSource, Inc.
HD Supply Holdings, Inc.
Pool Corp.
Watsco Inc.
WESCO International Inc.
Wolseley plc
$
27.80
6.87
29.49
63.44
107.00
76.21
57.45
$
1,374
674
5,774
2,755
3,475
3,390
14,939
$
1,565
990
11,175
3,138
4,069
4,797
16,095
5.6%
3.8%
9.0%
9.0%
8.0%
6.6%
6.5%
Mean
Median
Retailers
The Home Depot, Inc.
Kingfisher plc
Low e's Companies Inc.
Travis Perkins plc
Mean
Median
$
104.97
5.31
68.80
28.94
$
138,332
12,426
66,936
7,098
$
152,878
11,714
76,520
7,560
14.5%
8.6%
11.3%
7.8%
EV/LTM
Revenue
EV/NTM
EBITDA
Revenue
EBITDA
5.8x
-0.6x
3.2x
1.2x
3.2x
2.8x
3.5x
3.0x
3.3x
3.0x
3.0x
3.6x
1.9x
4.0x
0.9x
4.3x
1.3x
1.8x
1.9x
3.8x
1.0x
1.7x
1.5x
3.6x
11.0x
11.8x
13.8x
16.2x
7.9x
9.5x
9.3x
17.6x
7.1x
11.5x
8.8x
19.7x
1.8x
n/a
0.9x
3.1x
1.4x
1.8x
2.1x
2.5x
1.0x
1.6x
1.7x
n/a
9.5x
n/a
10.1x
9.7x
7.6x
8.8x
9.6x
11.1x
7.5x
9.1x
8.4x
14.5x
2.9x
3.1x
2.3x
1.8x
12.0x
11.2x
1.8x
1.7x
9.6x
9.5x
1.5x
5.2x
6.7x
1.9x
1.1x
2.8x
0.9x
0.7x
0.6x
1.2x
1.4x
1.0x
0.6x
0.7x
12.1x
16.3x
13.8x
15.8x
13.1x
9.4x
11.3x
0.6x
0.6x
1.2x
1.3x
1.0x
0.6x
0.7x
9.7x
11.4x
11.5x
13.8x
11.9x
8.4x
10.3x
2.9x
1.9x
0.9x
0.7x
13.1x
13.1x
0.9x
0.7x
11.0x
11.4x
1.2x
-0.5x
1.5x
0.7x
1.9x
0.6x
1.4x
0.8x
12.9x
7.2x
12.2x
10.4x
1.8x
0.7x
1.3x
0.8x
11.8x
7.6x
11.1x
9.8x
0.7x
1.0x
1.2x
1.1x
10.7x
11.3x
1.2x
1.1x
10.1x
10.5x
Source: Capital IQ as of 12/31/14
11
Building Products Trading Multiples
($ in thousands except per share data)
Stock
Market
Enterprise
EBITDA
Net Debt /
Price
Cap
Value
Margin
LTM EBITDA
EV/LTM
Revenue
EV/NTM
EBITDA
Revenue
EBITDA
Manufacturers
AAON Inc.
Advanced Drainage Systems, Inc.
Allegion Plc
American Woodmark Corp.
Armstrong World Industries, Inc.
ASSA ABLOY AB
Acuity Brands, Inc.
Boral Limited
Fletcher Building Ltd.
Fortune Brands Home & Security, Inc.
Griffon Corporation
Headw aters Incorporated
Interface Inc.
James Hardie Industries plc
Kingspan Group plc
Lennox International, Inc.
Masco Corporation
Masonite International Corporation
Mohaw k Industries Inc.
NCI Building Systems Inc.
Ow ens Corning
PGT, Inc.
Ply Gem Holdings, Inc
Quanex Building Products Corporation
Compagnie de Saint-Gobain S.A.
Sanw a Holdings Corporation
The Sherw in-Williams Company
Simpson Manufacturing Co., Inc.
Trex Co. Inc.
USG Corporation
Wienerberger AG
Mean
Median
$
22.39
22.98
55.46
40.44
51.12
53.01
140.07
4.34
6.48
45.27
13.30
14.99
16.47
10.80
17.37
95.07
25.20
61.46
155.36
18.52
35.81
9.63
13.98
18.78
42.64
7.04
263.04
34.60
42.58
27.99
13.85
$
1,220
1,216
5,309
640
2,806
19,629
5,951
3,395
4,441
7,142
658
1,102
1,091
4,809
2,980
4,567
8,978
1,835
11,325
1,362
4,211
459
948
679
23,899
1,661
25,251
1,694
1,363
4,051
1,620
$
1,177
1,956
6,373
513
3,717
22,171
5,752
3,965
5,755
7,654
1,367
1,562
1,298
5,109
3,121
5,116
11,056
2,172
13,616
1,531
6,395
610
1,935
559
34,664
1,871
26,671
1,435
1,362
5,959
2,536
22.7%
11.9%
18.9%
6.4%
10.5%
16.2%
14.4%
8.9%
9.7%
12.2%
7.8%
15.5%
10.9%
21.0%
9.6%
11.3%
11.4%
5.7%
14.5%
4.2%
12.5%
15.0%
7.3%
8.7%
9.9%
9.4%
13.3%
16.9%
20.1%
13.0%
9.4%
-0.5x
2.9x
2.6x
-2.5x
3.2x
2.3x
-0.6x
1.8x
2.0x
1.0x
4.6x
3.6x
1.9x
1.0x
0.6x
1.5x
1.9x
3.0x
2.0x
3.0x
3.2x
3.6x
9.3x
-2.3x
2.1x
0.8x
1.0x
-2.1x
0.0x
4.0x
2.8x
3.4x
1.7x
3.0x
0.7x
1.4x
2.9x
2.4x
0.9x
0.8x
1.7x
0.7x
2.0x
1.3x
3.2x
1.2x
1.5x
1.3x
1.2x
1.8x
1.1x
1.2x
2.2x
1.3x
0.9x
0.6x
0.6x
2.4x
1.9x
3.6x
1.6x
0.7x
15.0x
14.5x
16.0x
10.1x
13.0x
18.2x
16.7x
10.6x
8.0x
14.3x
8.8x
12.7x
12.1x
15.3x
13.0x
13.7x
11.4x
21.2x
12.1x
26.7x
9.6x
14.3x
18.3x
10.8x
6.1x
6.8x
18.2x
11.4x
17.8x
12.4x
7.7x
3.0x
1.5x
2.9x
0.6x
1.4x
2.8x
2.1x
1.0x
0.8x
1.7x
0.7x
1.8x
1.3x
2.9x
1.3x
1.5x
1.3x
1.1x
1.7x
0.9x
1.1x
1.7x
1.0x
0.9x
0.7x
0.6x
2.2x
1.8x
3.2x
1.5x
0.7x
12.9x
10.2x
13.7x
6.8x
9.6x
15.6x
14.0x
8.7x
8.1x
10.7x
8.0x
9.9x
10.6x
12.8x
12.7x
11.6x
10.2x
11.8x
10.8x
11.9x
8.2x
9.0x
11.6x
9.6x
6.6x
6.8x
15.4x
9.5x
14.3x
9.7x
6.1x
1.9x
2.0x
1.7x
1.4x
13.5x
13.0x
1.5x
1.4x
10.6x
10.2x
Source: Capital IQ as of 12/31/14
12
Building Products Trading Multiples
($ in thousands except per share data)
Hom e Builders
Beazer Homes USA Inc.
DR Horton Inc.
Hovnanian Enterprises Inc.
KB Home
Lennar Corp.
M/I Homes, Inc.
MDC Holdings Inc.
Meritage Homes Corporation
NVR, Inc.
PulteGroup, Inc.
Ryland Group Inc.
Standard Pacific Corp.
Taylor Morrison Home Corporation
Toll Brothers Inc.
WCI Communities Inc.
$
Stock
Market
Enterprise
EBITDA
Net Debt /
Price
Cap
Value
Margin
LTM EBITDA
19.36
25.29
4.13
16.55
44.81
22.96
26.47
35.99
1,275.33
21.46
38.56
7.29
18.89
34.27
19.58
$
531
9,239
600
1,519
8,925
562
1,292
1,408
5,224
7,957
1,778
2,042
625
6,012
509
$
1,718
12,293
2,367
3,803
14,425
1,061
1,936
2,245
5,368
8,660
2,876
3,926
3,412
8,820
619
5.3%
11.5%
5.3%
6.5%
12.3%
7.6%
6.3%
10.4%
11.2%
11.9%
10.8%
15.2%
12.3%
11.4%
7.7%
Mean
Median
Lum ber
Ainsw orth Lumber Co. Ltd.
Boise Cascade Company
Canfor Corp.
Louisiana-Pacific Corp.
Norbord, Inc.
Universal Forest Products Inc.
West Fraser Timber Co. Ltd.
Mean
Median
$
2.88
37.15
25.59
16.56
22.30
53.20
57.40
$
693
1,464
3,465
2,355
1,192
1,063
4,812
$
911
1,596
3,809
2,537
1,558
1,132
5,130
7.7%
5.3%
15.6%
2.3%
8.5%
5.0%
14.4%
EV/LTM
Revenue
EV/NTM
EBITDA
Revenue
EBITDA
15.4x
3.3x
15.0x
15.9x
5.8x
5.0x
6.1x
4.0x
0.3x
1.0x
4.1x
5.4x
4.6x
6.3x
4.0x
1.2x
1.5x
1.1x
1.7x
2.0x
0.9x
1.2x
1.1x
1.2x
1.5x
1.2x
1.7x
1.2x
2.3x
1.8x
22.2x
13.3x
21.7x
26.5x
16.5x
11.8x
18.4x
10.8x
11.0x
12.8x
10.9x
11.3x
10.1x
19.7x
23.0x
1.0x
1.2x
1.0x
1.4x
1.7x
0.9x
1.0x
0.9x
1.1x
1.4x
1.0x
1.5x
1.1x
2.1x
1.2x
12.6x
10.2x
12.8x
13.8x
11.4x
11.3x
9.0x
8.9x
9.4x
8.3x
8.2x
7.0x
8.1x
12.9x
10.4x
6.4x
5.0x
1.4x
1.2x
16.0x
13.3x
1.2x
1.1x
10.3x
10.2x
7.4x
0.7x
0.3x
4.0x
3.7x
0.5x
0.7x
2.3x
0.5x
1.3x
1.3x
1.3x
0.4x
1.5x
29.7x
8.5x
8.3x
nmf
15.1x
8.9x
10.7x
2.0x
0.4x
1.2x
1.2x
1.3x
0.4x
1.4x
13.7x
6.9x
7.1x
21.2x
8.6x
7.6x
7.8x
2.5x
0.7x
1.2x
1.3x
13.5x
9.8x
1.1x
1.2x
10.4x
7.8x
Source: Capital IQ as of 12/31/14
13
Building Products Recent M&A Transactions
($ in millions)
Date
1
Dec-14
Valuation
Target
Target Description
Acquiring Company
HeidelbergCement Bricks Unit
Manufactures brick and roof tile building products
Lone Star Funds
Ibstock Brick Limited
Manufactures clay bricks
CRH Clay and Concrete Businesses
Enterprise
Value
Revenue
Multiple
$1,400
-
Bain Capital Europe
649
-
Manufactures clay and concrete building products
Bain Capital Private Equity
648
-
Lumber Specialties
Manufactures and distributes structural building
components
US LBM Holdings
-
-
Ainsworth Lumber
Manufactures engineered wood products
Norbord
890
2.3x
Dec-14
Farrow & Ball
Manufactures paints and wallpapers
Ares Private Equity Group
432
-
Nov-14
Airxcel
Manufactures air conditioning, heating, ventilating and
related appliances
Yukon Partners, One Rock
Capital Partners
-
-
Nov-14
CRS Proppants
Provides resin coated sands for oil and gas well fracturing
applications
Eagle Materials
225
-
Vicwest Inc. Building Products Division
Offers products and services spanning all major
construction industry segments
Kingspan Group
136
-
Vicwest Inc. Westeel Division
Manufactures grain storage systems
Ag Growth International
195
-
Nov-14
CENTRIA
Manufactures architectural insulated metal panel wall and
roof systems and provides coil coating services
NCI Building Systems
245
1.1x
Nov-14
Connor Sport Court International
Designs and manufactures sports surfacing and flooring
products
Gerflor USA
-
-
Nov-14
Icynene
Manufactures spray polyurethane foam insulation
products
Friedman Fleischer & Lowe
Capital Partners
-
-
Nov-14
Hanson Structural Precast
Manufactures structural and architectural precast
components
Wells Concrete Products
-
-
Nov-14
Pactiv Building Insulation Division
Manufactures XPS insulation products
Kingspan Group
82
-
Oct-14
Trussbilt
Manufactures detention security products
Sentinel Capital Partners
-
-
Oct-14
National Diversified Sales
Manufactures storm water management, landscape
irrigation and water flow management systems
NORMA Group
285
2.2x
Oct-14
Peterson Industries
Manufactures shower doors, mirror doors, closet doors
and glass enclosures
Aldora Aluminum & Glass
Products
-
-
1
Dec-14
1
Dec-14
1
Dec-14
1
Dec-14
1
1
Nov-14
1
Nov-14
1
(1): Announced Date
14
Building Products Recent M&A Transactions
($ in millions)
Valuation
Date
Target
Target Description
Acquiring Company
Oct-14
Corialis Group
Manufactures windows and doors
Advent International
Oct-14
VantaCore Partners
Manufactures aggregates for infrastructure, energy,
commercial and residential markets
Natural Resource Partners
Oct-14
Tell Manufacturing
Manufactures and distributes commercial and residential
locks and door hardware
Spectrum Brands
Sep-14
CGI Windows & Doors
Manufactures aluminum and vinyl impact resistant
windows and doors
Sep-14
Simonton Windows
Sep-14
Enterprise
Value
Revenue
Multiple
-
-
205
-
-
-
PGT Industries
111
2.9x
Manufactures vinyl framed windows and patio doors
Ply Gem Industries
130
-
Dura-Line Holdings
Manufactures and distributes high-density polyethylene
(HDPE) based conduits, ducts and pressure-pipe solutions
Mexichem
630
-
Sep-14
Fortune Brands Windows
Manufactures vinyl framed windows and patio doors
Ply Gem Industries
130
-
Sep-14
Chase Industries
Manufactures made-to-order impact traffic doors and
specialty door systems
Audax Group
-
-
Sep-14
Metro Ready Mix Concrete
Supplies ready mix concrete
Smyrna Ready Mix
-
-
Sep-14
Aquatic US Holdings
Manufactures bathtubs and showers
The Sterling Group
-
-
Sep-14
Versatex Building Products
Manufactures cellular PVC building products serving both
the new construction and R&R markets
Highlander Partners
-
-
Aug-14
Brundage-Bone Concrete Pumping
Provides concrete pumping and material placements
services in North America.
Peninsula Pacific Strategic
Partners
171
-
Aug-14
Hurd Windows and Doors
Manufactures windows and doors
Sierra Pacific Industries
-
-
Jul-14
Custom Window Systems
Manufactures windows and doors
Nautic Partners
-
-
Jul-14
Sentry Safe
Manufactures protective security containers
Master Lock Company
118
0.8x
Jul-14
Tensar Corporation
Provides site development solutions
Castle Harlan
400
-
Lafarge Tarmac Holdings
Manufactures ready mix concrete, cement and aggregates
and asphalt
Lafarge
3,032
-
1
Jul-14
(1): Announced Date
15
The Middle Market Leader in Building and Infrastructure
Recent Lincoln International Building and Infrastructure transactions
CHS Capital has sold
Dura-Line Corporation
to Mexichem
for $630 million
Graham Partners has
sold National Diversified
Sales, Inc. to Norma
Group for $285 million
The Riverside Company
has sold Connor Sport
Court International, Inc.
to Gerflor SAS
Southfield Capital
Advisors has sold
RCR International Inc. to
Peak Rock Capital
Industrial Opportunity
Partners has sold
Carlson Systems to
TENEX Capital
Management
has refinanced
Unitranche
Acquisition Facility
Revolving Credit Facility
Sentry Group, Inc.
has been sold to
Fortune Brands Home &
Security for $117.5 million
Magnus Pacific
Corporation has been
sold to Great Lakes
Dredge & Dock
Corporation
Sentinel Capital
Partners has sold
Chase Doors to
Audax Group
Hartland Controls
LLC has recapitalized
with Incline Equity
Partners
Opus Group of
Companies
has been sold to
Beaulieu International
Group
Resilience Capital
Partners has sold
Taylor Lumber, Inc. to
Ohio Valley Veneer, Inc.
Officer contacts
Jim Lawson
Managing Director & Chairman
jlawson@
lincolninternational.com
+1-312-580-8326
Jeff Corum
Managing Director
jcorum@
lincolninternational.com
+1-312-580-6282
Dr. Burkhard Weber
Managing Director
bweber@
lincolninternational.com
+1-212-257-7737
Carl Gatenio
Vice President
cgatenio@
lincolninternational.com
+1-312-506-2764
Contributors
Scott Molinaro, Associate
Tom O’Sullivan, Analyst
16