philadelphia insider - bgl · pgt innovations (nyse: pgti) is reporting strong growth, with sales...
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The BGL Building Products Insider is published by Brown Gibbons Lang & Company, a leading independent investment bank
serving middle market companies throughout the U.S. and internationally.
Insider
Residential Building Products
Residential Gains
Suppliers of residential building products project optimism,
supported by a growing economy and positive momentum
in the housing market. Strategic M&A remains high and is
broad-based, with buyers aggressively pursuing acquisitive
growth to increase scale, market position, and profitability.
September 2018Brown Gibbons Lang & Company
Chicago One Magnificent Mile 980 N. Michigan Avenue Suite 1880 Chicago, IL 60611
Cleveland One Cleveland Center 1375 East 9th Street Suite 2500 Cleveland, OH 44114
Philadelphia One Liberty Place 1650 Market Street Suite 3600 Philadelphia, PA 19103
bglco.com
Building Products Insider
Market Update
2
Favorable Macro Indicators Point to Continued Growth
Economic Growth
Real GDP in the United States is predicted to grow
2.8 percent in 2018, according to the Third Quarter 2018
Survey of Professional Forecasters released this August by
the Federal Reserve Bank of Philadelphia. Forecasters are
predicting 2.8 percent growth in 2019, 1.8 percent growth in
2020, and 1.5 percent growth in 2021. The unemployment
rate is predicted to average 3.9 percent in 2018, 3.6 percent
in 2019, 3.7 percent in 2020, and 4.0 percent in 2021.
Housing Starts
Total housing starts are forecasted to reach 1,279,000
in 2018 and 1,301,000 in 2019 according to August
estimates from the National Association of Home Builders,
representing 5.8 percent and 1.7 percent increases,
respectively, over a 2017 level of 1,208,000. Single-family
starts are forecasted to grow roughly 5 percent annually to
approach 1 million units by 2020.
Repair & Remodeling
The Joint Center for Housing Studies of Harvard University
forecasts robust demand for residential remodeling, according
to the Leading Indicator of Remodeling Activity released this
July, which predicts homeowner spending on improvements
and repairs will reach nearly $350 billion by mid-year 2019.
Annual growth is projected to remain near 7 percent.
“A growing economy and stronger job market are boosting
owners’ willingness to invest in home improvements,” says
Chris Herbert, Managing Director of the Joint Center for
Housing Studies. “Rising home values and increased home
equity levels are also encouraging more owners to do larger
upgrade and replacement projects.”
Builder Confidence
Home builder confidence remains healthy, holding steady at 67
in September and August on the National Association of Home
Builders (NAHB)/Wells Fargo Housing Market Index (HMI).
The HMI index registered above 70 for four months in 2018,
according to the NAHB, with a high reading of 72 in January.
“A growing economy and rising incomes combined with
increasing household formations should boost demand for
new single-family homes moving forward,” said NAHB Chief
Economist Robert Dietz.
Rising Home Values
Home prices continue to rise, supported by a 6.2 percent
rise over the past 12 months in the S&P CoreLogic Case–
Shiller National Composite Home Price Index. The June
increase marks 29 consecutive months of expansion.
Millennials Active Home Buyers
Generational shifts are influencing home purchases and
spending on residential building products. According to
findings from the 2018 Home Buyer and Seller Generational
Trends Report released by the National Association of
REALTORS® (NAR), millennials (37 years and younger)
account for the largest share of home buyers (36 percent),
of which 65 percent represent first-time home buyers—
making them the most active generation of buyers for the
fifth consecutive year. Despite reaching an all-time survey
high in 2018, the overall share of millennial buyers remains
at an underperforming level as low housing supply has
reduced affordability, according to NAR chief economist
Lawrence Yun.
Building Products Insider
Market Update
3
Market IndicatorsNew Housing Starts - Single and Multifamily 30-Year Mortgage Rate
New Home Sales
Source: U.S. Census Bureau Source: Freddie Mac
Source: U.S. Census Bureau Source: National Association of Realtors
Source: S&P Global Market Intelligence Source: Joint Center for Housing Studies of Harvard University
Existing Home Sales and Months Supply
National S&P CoreLogic / Case-Shiller Index Repair & Remodeling
$2
52
.5
$2
56
.6
$2
60
.9
$2
64
.4
$2
67
.0
$2
70
.8
$2
74
.7
$2
78
.0
$2
79
.1
$2
84
.5
$2
90
.3
$2
95
.2
$2
97
.2
$3
02
.5
$3
08
.3
$3
13
.9
$3
17
.2
$3
24
.1
$3
31
.0
$3
36
.7
$3
39
.0
$3
46
.8
6.2% 6.1% 6.0% 5.9%5.7%
5.5%5.3%
5.1%
4.5%
5.1%
5.7%
6.2%6.5% 6.4%
6.2% 6.3%
6.8%7.1%
7.4% 7.3%6.9% 7.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
$225
$250
$275
$300
$325
$350
$375
$400
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016 2017P 2018 2019P
Rate of Change(in B
illio
ns)
Homeowner Improvement & Repairs Four-Quarter Moving Rate of Change
1,282
876
392
0
500
1,000
1,500
2,000
2,500
Jan
-05
De
c-0
6
No
v-0
8
No
v-1
0
Oct
-12
Se
p-1
4
Au
g-1
6
Au
g-1
8
(In
Th
ou
san
ds)
Total In Structures with 1 Unit In Structures with 5 Units or More
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Jan
-10
Sep-
11
Jun
-13
Feb-
15
Nov
-16
Jul-
18
Months of Supply
Exis
ting
Hom
e Sa
les
(In T
hous
ands
)
100
120
140
160
180
200
220
Jan
-07
No
v-0
8
Oct
-10
Se
p-1
2
Au
g-1
4
Jul-
16
Jun
-18
0
200
400
600
800
1,000
1,200
1,400
1,600
Jan
-05
Jul-
06
Jan
-08
Jul-
09
Jan
-11
Jul-
12
Jan
-14
Jul-
15
Jan
-17
Jul-
18
New
Hom
e Sa
les
(in T
hous
ands
)
4.55%
0%
2%
4%
6%
8%
10%
Jan
-05
Dec
-06
Nov
-08
Nov
-10
Oct
-12
Sep-
14
Aug
-16
Aug
-18
Building Products Insider
Market Update
Sentiment Remains Positive
In Masco Corporations’s (NYSE: MAS) May presentation
to investors at the J.P. Morgan 11th Annual Homebuilding
and Building Products Conference, CFO John Sznewajs
highlighted solid industry fundamentals to support
continued future growth, citing appreciating home values,
strong housing turnover, and household formation, where
millennials represent an important buying group. “The
big one that we think is going to drive our business over
the next decade or so is household formations. With the
millennial group coming out of college and reaching those
household formation years, we look at about 12.5 million
households being formed over the course of the next 10
years. That’s up about 50 percent from the last 10 years.
So, we think that’s going to be a huge driver. Whether it’s
multi-family housing or single-family housing, we see nice
tailwinds across our products over the course of the next
decade.” Rising interest rates are not expected to soften
product demand.
Speaking to a “robust acquisition pipeline”, Sznewajs
anticipates an active but selective approach to acquisitions,
supported by a “…a fair amount of cash to deploy to
acquisitions if we so choose.” He added, “As we think about
how the industry stacks up, how our businesses line up
right now, we think it’s a great time to be in the building
products area. We’ve got great macro fundamentals…in
terms of housing starts, home price appreciation, housing
turnover. All that, we think, leads to a very strong growth in
the next several years.”
PGT Innovations (NYSE: PGTI) is reporting strong growth,
with sales up 24 percent in the first half of 2018. The company
achieved a 20 percent adjusted EBITDA margin in 2Q 2018—
the first time in its history. “Demand continued to be strong in
both new construction and repair and remodeling channels of
our business, with sales growing in both channels compared
to last year,” said CEO Jeffrey Jackson in the company’s
second quarter earnings call. PGT reported 30 percent growth
in repair and remodel sales year-over-year in the quarter and
12 percent growth in new construction.
Craig Menear, CEO of The Home Depot (NYSE:HD),
underscored a favorable macro environment during
the company’s FQ2 2019 earnings call, saying: “The U.S.
economy and drivers for home improvement spending are
strong.” Menear reported record sales and net earnings
during the quarter, with the company outperforming plan
during the first half, and raised sales and earnings guidance
for fiscal 2018. CFO Carol Tomé echoed positive industry
growth prospects in her comments, “As we look to the back
half of the year, we continue to expect strong economic
growth, with the backdrop of a healthy home improvement
environment. Homeowners continue to enjoy home price
appreciation, and rising wages and low unemployment have
driven consumer confidence to record-high levels. These
trends are all supportive of our business.”
M&A Underscores Optimism
M&A activity involving suppliers of residential building
products has been robust, indicative of a bullish outlook
on the sector’s fundamentals and future growth prospects.
Strategic and financial buyers have been aggressive with
participants speaking to active acquisition pipelines, while
headline deals suggest continued consolidation in the
coming quarters. Notable bellwether deals include Sherwin-
Williams’ (NYSE:SHW) $11.0 billion acquisition of Valspar
(17.2x EBITDA multiple); the $3.6 billion purchase (pending)
of Ply Gem Industries by NCI Building Systems (NYSE: NCS)
(10.2x EBITDA); and Leonard Green & Partners’ acquisition
of SRS Distribution, valued at more than $3.0 billion.
Valuations remain strong with premium multiples assigned
to assets that bring portfolio diversification, margin
expansion, and access to new markets. Industry analysts
characterize valuations as “frothy”, with highly strategic
acquisitions commonly trading for more than 10x EBITDA
pre-synergies. Purchase price multiples for middle market
leveraged buyouts reached a new record high of 10.7x in
2Q 2018, reported Thomson Reuters LPC.
4Sources: S&P Capital IQ, PitchBook, Equity Research, Company Filings, public data.
Building Products Insider
Market Update
Selected Recent M&A Activity in Residential Building Products
In August 2018, PGT Innovations (NYSE: PGTI) completed
the acquisition of Western Window Systems from PWP
Growth Equity, calling the buy “compelling” and creating a
“national leader in the premium window and door space”.
The platform expands PGT’s product portfolio and footprint
outside of Florida into new markets with access to growing
geographies throughout the western U.S., including
California, Texas, Arizona, Nevada, Colorado, Oregon,
Washington, and Hawaii, the company said. The $360 million
cash buy represents a premium valuation at 19.2x 2017
EBITDA (11.3x 2018E EBITDA).
Jeff Jackson, CEO of PGT Innovations, commented on the
acquisition: “Western Window Systems delivers growth
by disrupting industry norms and adopting non-traditional
approaches to contemporary windows and doors systems.
With a developed footprint across the South and West, we
believe the combined company will be well positioned to
drive profitable, sustained growth, including opportunities
to introduce our respective products to each other’s
customer base. We believe this transaction will accelerate
our ability to enhance value creation for our shareholders.”
In August 2018, Ply Gem Industries announced it was
acquiring the Silver Line and American Craftsman brands
and related operating assets from Andersen Corporation—a
move expected to bolster its leadership position in vinyl
windows and patio doors for the new construction and
home improvement markets. The $190 million purchase
price values the business at a 10.0x multiple of TTM EBITDA
through 2Q 2018.
Ply Gem CEO Gary Robinette commented on the
acquisition, saying: “This transaction is in full alignment with
our strategic growth plan. The addition of the Silver Line
business will better balance the mix of end markets that
we serve, strengthen our core capabilities, and contribute
significantly to revenues and earnings. We are confident
this will help us achieve synergies and competitive
advantages that drive top line sales and enhanced customer
value.”
In July 2018, NCI Building Systems (NYSE: NCS) signed a
definitive agreement to acquire Ply Gem Industries from
Clayton Dubilier & Rice (CD&R) in a stock-for-stock merger
valued at $3.6 billion.
Ply Gem is a leading supplier of exterior residential building
products, holding the number one market position in vinyl
siding and vinyl windows in North America, reported NCI
in an investor presentation outlining the transaction. The
company manufactures and markets a comprehensive
offering of building products including windows and patio
doors, vinyl and aluminum siding and accessories, designer
accents, cellular PVC trim and mouldings, vinyl fencing and
railing, stone veneer, roofing, and gutterware products for
the new construction and home repair and remodeling
markets.
The combination significantly diversifies NCI’s portfolio,
creating a leading North American exterior building products
platform serving both the commercial and residential new
construction and remodeling markets. Combined revenue
and adjusted EBITDA in 2018 for the two companies is
projected to be $4.5 billion and $540 million, respectively.
Pre-synergies, Ply Gem is valued at ~10.2x 2018 EBITDA and
~8.2x including full run-rate synergies.
NCI Chairman James Metcalf, who will lead the combined
company as CEO, commented on the transaction: “This
transformational combination creates the leading exterior
building products company with multiple avenues for
further growth. Both companies are experiencing sustained
momentum driven by meaningful cost savings, and the
greater scale and diversification of the combined company
support organic growth, margin expansion, and longer-term
M&A opportunities.”
CD&R took Ply Gem private this April for an enterprise
value of $2.26 billion, valuing the business at a 9.9x multiple
of EBITDA. Concurrent with the Ply Gem acquisition, CD&R
also purchased Atrium Corporation, a national supplier of
vinyl and aluminum windows and doors serving the new
construction and repair and remodel markets. The company
had $350 million of revenue in 2017.
At the time of CD&R’s announcement, Carolyn Zulandt, an
Analyst with market research firm The Freedonia Group,
spoke to Plastics News about the significance of the
transaction to the U.S. window market, saying: “Ply Gem
and Atrium are complementary businesses with broad
window and door product offerings…This new combined
company will benefit from improved production and
distribution efficiencies, as well as advantages like shared
technological expertise in a very competitive industry.
5Sources: S&P Capital IQ, PitchBook, Equity Research, Company Filings, public data.
Building Products Insider
Market Update
Together, Ply Gem and Atrium should capture a share of the
U.S. window market that comes closer to that of industry
giant Andersen than any other supplier.”
Nate Sleeper, Partner at CD&R, spoke to the merits of the
combination: “This is a transformational milestone for two
highly complementary businesses. Together, Ply Gem and
Atrium have a well-positioned platform across North America,
a deep set of capabilities to serve customers, and a strong
foundation for long-term growth and value creation.”
Other recent M&A activity in the window and door market
includes buys by JELD-WEN (NYSE:JELD) in 2018 (American
Building Supply, A&L Windows, and Domoferm); Masonite
(NYSE:DOOR) (DW3 Products Group (1.6x Revenue) in 2018
and A&F Wood Products in 2017); Slocomb Windows and
Doors (Residential Division of Lockheed Window) in 2018;
Andersen Corporation (Heritage Windows and Doors) in
2018; and Pella Corporation (Bonelli Enterprises) in 2017.
Private equity sponsors have also been executing on buy-and-
build strategies in the space:
• In August 2018, Tower Arch Capital recapitalized
Panoramic Doors in partnership with senior management,
including founder and CEO Alan Rees. Panoramic
manufactures patio door and window systems for
residential and commercial applications. The company
stated plans to expand its manufacturing footprint and
distribution with support from Tower Arch.
• Harvey Building Products, a portfolio company of
Dunes Point Capital, acquired Thermo-Tech Windows
in March 2018, its second add-on acquisition following
the purchase of Soft-Lite Windows in December 2016.
Dunes Point Capital acquired Harvey in 2015. Thermo-
Tech manufactures vinyl windows and sliding doors for
residential and light commercial applications, expanding
Harvey’s footprint into the Midwest.
• Sunrise Windows & Doors, backed by The Riverside
Company, acquired Paragon Windows & Doors in
July 2017. The buy marks the second add-on for the
portfolio company, following New North Trim in 2013.
Riverside acquired Sunrise in 2010. Paragon manufactures
residential repair and replacement doors and windows,
expanding Sunrise’s product portfolio.
In May 2018, Leonard Green & Partners acquired SRS
Distribution for a reported purchase price in excess of
$3.0 billion. The residential roofing distributor has had an
acquisitive history under private equity ownership, having
completed 53 tuck-in acquisitions since the platform was
launched in 2008. Exiting sponsor Berkshire Partners
acquired the company in 2013 from AEA Investors.
Acquisitions in 2018 include, in April, Contractors Siding,
Windows & Roofing Supply, adding locations in Nebraska and
South Dakota and marking the entry into its 42nd state (South
Dakota); and in March, Top-Notch Roofing Supply serving
East Texas with two locations; and American Roofing Supply,
a Colorado-based distributor of residential and commercial
roofing products and accessories. With these acquisitions,
SRS operates 217 locations in 42 states.
In January 2018, Cortec Group recapitalized Window Nation,
a value-added distributor of replacement windows, doors,
roofing, and siding products. The company serves the
residential and repair and remodeling markets in the Mid-
Atlantic and Midwest, with a leading presence in Maryland,
Virginia, Ohio, and Pennsylvania. “The company’s rapid
expansion, current momentum, and future prospects are
incredibly exciting. We look forward to building on Window
Nation’s success and expanding into new markets,” said
Michael Najjar, a Managing Partner at Cortec. Jeffrey Lipsitz,
also a Managing Partner at Cortec, added, “We are enthusiastic
about partnering with Harley and Aaron to expand the
organization and support Window Nation’s growth.”
6Sources: S&P Capital IQ, PitchBook, Equity Research, Company Filings, public data.
Building Products Insider
Market Update
7Sources: S&P Capital IQ, PitchBook, Equity Research, Company Filings, public data.
Summary of Selected Building Products M&A Activity (YTD 2018)
($ in millions) EnterpriseDate Acquirer Target Business Description Revenues EBITDA Value Revenues EBITDA
Pending Ply Gem Holdings, Inc Silver Line Division of Andersen Corporation Manufactures windows and patio doors $440.0 $44.0 $190.0 0.43x 10.0x
Pending NCI Building Systems, Inc. (NYSE:NCS) Ply Gem Holdings, Inc Manufactures exterior building products used in residential construction - $353.58 $3,606.5 - 10.2x
Pending ASSA ABLOY AB (publ) (OM:ASSA B) Pioneer Industries, Inc. Manufactures metal doors, window frames, and wind resistant assemblies - - - - -
Pending Gebr. Knauf KG. USG Corporation (NYSE:USG)Manufactures building materials including gypsum and related products, construction plaster products, and interior system products such as ceiling tiles and grids
$3,223.0 $528.0 $6,937.3 2.15x 13.1x
Sep-18 Wynnchurch Capital, LLC North American Business of Uponor Infra Oy Manufactures polyethylene pipe and fittings $90.9 - $47.4 0.52x -
Sep-18 Gulfside Supply, Inc. Kimal Lumber Company Supplies lumber and building materials $47.4 - - - -
Aug-18 Garaga Inc. Mid-America Door Company Manufactures steel sectional overhead-type doors - - - - -
Aug-18 Armstrong World Industries, Inc. (NYSE:AWI) Steel Ceilings, Inc. Manufactures and installs architectural metal ceilings and specialty systems for commercial buildings $10.0 - - - -
Aug-18 Majestic Marble And Glass Company Carolina Counter's, Inc. Manufactures and installs countertops and laminate solutions for commercial and residential kitchens - - - - -
Aug-18 Ferguson Enterprises, Inc. Jones Stephens Corporation (World and Main) Manufactures specialty plumbing products - - - - -
Aug-18 PGT Innovations, Inc. (NYSE:PGTI) Western Window Systems Manufactures aluminum windows and door products - $18.8 $360.0 - 19.2x
Aug-18 Tower Arch Capital Panoramic Doors LLC Manufactures independent panel folding patio door systems - - - - -
Aug-18 The Detering Company of Houston, LP Weatherford Door & Window Co., Inc. Manufactures customized windows and doors - - - - -
Aug-18 CertainTeed Corporation North American Ceilings Business of Hunter Douglas N.V. Manufactures architectural ceilings and soffit systems $36.0 - - - -
Jul-18 Amada Holdings Co., Ltd. (TSE:6113) Amada Marvel, Inc. Manufactures industrial grade metal cutting saws $23.4 - - - -
Jul-18 Celulosa Arauco y Constitución S.A. Assets of Panolam Industries International, Inc. Integrated surface solutions business - - - - -
Jul-18 Wilsonart LLC Laminate Works Dallas, LLC Manufactures high pressure laminate panels - - - - -
Jul-18 JICI, LLC Integrity Controls Inc. Manufactures valves, strainers/filtration, piping products/hoses, process, and instrumentation products - - - - -
Jul-18 MultiPure Inc. Rainshow'r Manufacturing, Inc. Manufactures shower, bath, and garden filters - - - - -
Jul-18 Artisan Design Group, Inc. Décor Flooring, LLC/Kermans Flooring, LLC Designs and installs flooring products - - - - -
Jul-18 Mueller Industries, Inc. (NYSE:MLI) ATCO Rubber Products, Inc. Manufactures flexible duct systems for residential and commercial heating, ventilation, and air conditioning (HVAC) applications $166.0 - $162.8 0.98x -
Jul-18 Barrette Outdoor Living, Inc. Integrity Composites LLC Manufactures durable decking, railing, and dock planks - - - - -
Jul-18 Air Hydro Power, Inc. Alabama Bolt & Supply, Inc. Manufactures hydraulics, pneumatics, hose and fittings, and industrial fasteners - - - - -
Jun-18 Summit Materials, Inc. (NYSE:SUM) Buckingham Slate Company Provides roofing and building products including flooring, custom/structural, and flagging products; and wall and crushed stones - - - - -
Jun-18 Continuus Material Recovery, LLC Manufacturing Assets of The ReWall Company, LLC Manufactures roofing products - - - - -
Jun-18 The AZEK Company LLC VERSATEX Building Products, LLC Manufactures PVC trim boards and other products for remodeling, new construction, and fabrication applications - - - - -
Jun-18 Masonite International Corporation (NYSE:DOOR) The Maiman Company/Graham Manufacturing Corporation
Manufactures architectural flush wood doors for used in commercial construction $70.0 - - - -
Jun-18 Clopay Building Products Company, Inc. CornellCookson, Inc. Manufacture rolling doors and grilles - - $180.0 - -
May-18 Vaughan & Bushnell Manufacturing Company All Assets of Dasco Pro, Inc. Manufactures chisels and punches - - - - -
May-18 Kohlberg & Company, L.L.C. Senneca Holdings, Inc. Manufactures doors, including traffic, corrosion resistant, strip, cold storage, fire, and sliding doors - - - - -
May-18 Arcadia Incorporated Assets of Metal Window Corp. Manufactures aluminum window and door products for residential use - - - - -
Apr-18 Oldcastle BuildingEnvelope, Inc. (CRH plc) Coral Industries, Inc. Manufactures architectural aluminum framing systems used in commercial construction - - - - -
Apr-18 BASE Equity Partners, L.P.; The Frederic H. Mayerson Group Fortis Security Products, LLC Manufactures physical security products such as bullet resistant
windows, transaction drawers, and vault doors - - - - -
Apr-18 VELUX America Inc. Wasco Products, Inc. Manufactures standard and custom skylights for commercial and residential markets - - - - -
Apr-18 Clayton, Dubilier & Rice, Inc. Atrium Corporation Manufactures aluminum and vinyl windows and doors for the residential and light commercial construction markets $350.0 - - - -
Apr-18 Clayton, Dubilier & Rice, Inc. Ply Gem Holdings, Inc Manufactures residential and commercial building products $2,056.3 $227.5 $2,260.6 1.10x 9.9x
Apr-18 JELD-WEN Holding, Inc. (NYSE:JELD) American Building Supply, Inc. Manufactures door, millwork, and hardware products for residential and commercial applications - - - - -
Mar-18 Life Safety Consortium, LLC Fire Door Solutions, LLC Manufactures fire door safety products - - - - -
Mar-18 River Associates Investments, LLC Quikserv Corp. Manufactures pass-through and security transaction products such as drive-thru windows, transaction drawers, and bullet resistant products
Mar-18 Harvey Industries, Inc. Thermo-Tech Windows and Doors LLC Manufactures vinyl windows and doors - - - - -
Mar-18 Harbour Group Nationwide Industries Inc. Manufactures hardware products for the fence and gate, cable railing, and patio market - - - - -
Mar-18 Undisclosed Carolina Precision Fibers IncManufactures construction materials and building products from recycled materials such as cellulose insulation products, industrial fiber, and bonded fiber matrix (BFM)
- - - - -
Mar-18 Amesbury Group Inc. Ashland Products Inc. Manufactures residential window and door hardware $67.2 $11.2 $101.0 1.50x 9.0x
Mar-18 Andersen Corporation Tashco Industries, Inc. Manufactures aluminum windows and doors - - - - -
Mar-18 United Subcontractors, Inc. Glasshouse Fabricates and installs architectural glass products for residential and commercial projects - - - - -
Mar-18 Allegion plc (NYSE:ALLE) Aurora Systems Inc. Manufactures sliding doors and interior storefront assemblies $18.0 - - - -
Feb-18 Foundation Investment Partners, LLC Discount Drainage Supplies Distributes concrete drainage products, corrugated steel pipes, sanitary sewers, geotextiles, PVC pipes, and other municipal supplies - - - - -
Feb-18 Wind Point Partners Ox Engineered Products, LLC Manufactures structural sheathing and thermal insulation building products - - - - -
Feb-18 Rankin Industries Inc.; Broco, Inc Chamberlain Security Manufactures security components to protect the contents of safes, filing cabinets, and ATMs - - - - -
Feb-18 Clearlake Capital Group, L.P. Janus International Group, LLC Manufactures and installs steel roll-up doors and building components for self-storage, industrial, and commercial door dealer markets - - - - -
Feb-18 Foley Products Company Certain Drainage Assets in Alabama, Georgia and Tennessee of Forterra, Inc. Drainage pipe and products manufacturing operations - - - - -
Jan-18 The Delaney Co. Bravura Brass Manufactures forged brass door hardware - - - - -
Jan-18 Slocomb Windows and Doors, Inc. Residential Division of Lockheed Window Corp. Manfactures windows and doors for the residential market - - - - -
Jan-18 ICP Construction, Inc. Arizona Polymer Flooring, Inc. Manufactures flooring products and concrete coating systems - - - - -
Jan-18 Vertiv Group Corporation Energy Labs Inc.Manufactures air handling units, air cooled units, evaporative cooled roof top DX units, and indirect and direct evaporative cooling and energy recovery systems
- - - - -
Jan-18 Bohle America, Inc. The Group Legacy, L.C. Manufactures kitchen and bath hardware and accessories - - - - -
Jan-18 GAL Manufacturing Company, LLC Courion Industries, Inc. Manufactures freight door systems, cartlift systems, and replacement parts - - - - -
Jan-18 Construction Supply Holdings, LLC Brock-White Co. of Wisc., Inc. Manufactures building products - - - - -
Jan-18 Allegion plc (NYSE:ALLE) Technical Glass Products, Inc. Manufactures advanced fire-rated entrance, aluminum fire flames, and wall systems for commercial applications $80.0 - - - -
Jan-18 Ohio Awning & Manufacturing Co., Inc. The Canvas Exchange Inc. Manufactures awnings - - - - -
Jan-18 Capital Partners, Inc. The Fletcher-Terry Company Manufactures substrate cutters for the picture framing, retail hardware, sign and graphics, and industrial glass markets - - - - -
Jan-18 Henry Company LLC Fortifiber, LLC Manufactures building papers, house wraps, concrete products, and window and door flashing products - - - - -
Target Enterprise Value/
Building Products Insider
Industry Valuations
Sector Performance
BGL Building Products indices de�ned on Pages 9 and 10.SOURCE: S&P Capital IQ.
Building Products Distributors Lumber and Wood Manufacturers
Aggregates and Cement Producers
Commercial-Focused Building Products ManufacturersResidential-Focused Building Products Manufacturers
Homebuilders
Q113
Q213
Q313
Q413
Q114
Q214
Q314
Q414
Q115
Q215
Q315
Q415
Q116
Q216
Q316
Q416
Q117
Q217
Q317
Q417
Q118
Q218
EV/EBITDA 15.3x 14.6x 14.5x 13.9x 12.2x 11.6x 10.5x 11.1x 12.7x 11.6x 11.4x 11.9x 11.3x 11.2x 11.1x 10.8x 10.9x 11.5x 11.5x 13.7x 11.6x 12.0x
EV/Revenue 1.3x 1.3x 1.3x 1.3x 1.3x 1.3x 1.2x 1.3x 1.3x 1.4x 1.3x 1.4x 1.4x 1.4x 1.4x 1.3x 1.6x 1.7x 1.9x 2.1x 1.9x 1.8x
0.00x
0.25x
0.50x
0.75x
1.00x
1.25x
1.50x
1.75x
2.00x
2.25x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
18.0x
Q113
Q213
Q313
Q413
Q114
Q214
Q314
Q414
Q115
Q215
Q315
Q415
Q116
Q216
Q316
Q416
Q117
Q217
Q317
Q417
Q118
Q218
EV/EBITDA 12.4x 13.3x 15.1x 14.7x 14.4x 14.2x 12.6x 13.9x 15.0x 14.5x 12.6x 13.1x 12.8x 11.7x 11.4x 13.2x 11.6x 11.1x 11.4x 11.9x 12.0x 12.8x
EV/Revenue 1.3x 1.3x 1.3x 1.4x 1.4x 1.4x 1.3x 1.5x 1.6x 1.7x 1.7x 1.6x 1.5x 1.4x 1.5x 1.7x 1.7x 1.6x 1.7x 2.0x 1.8x 2.1x
0.00x
0.25x
0.50x
0.75x
1.00x
1.25x
1.50x
1.75x
2.00x
2.25x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
18.0x
Q113
Q213
Q313
Q413
Q114
Q214
Q314
Q414
Q115
Q215
Q315
Q415
Q116
Q216
Q316
Q416
Q117
Q217
Q317
Q417
Q118
Q218
EV/EBITDA 13.4x 8.7x 7.8x 8.3x 8.7x 9.6x 10.7x 11.8x 11.3x 11.3x 8.8x 9.6x 15.4x 12.5x 11.3x 10.0x 9.1x 8.2x 7.8x 6.8x 6.0x 5.9x
EV/Revenue 1.6x 1.2x 1.3x 1.3x 1.3x 1.2x 1.2x 1.3x 1.4x 1.5x 1.1x 1.4x 1.3x 1.2x 1.2x 1.2x 1.3x 1.3x 1.3x 1.3x 1.3x 1.3x
0.00x
0.25x
0.50x
0.75x
1.00x
1.25x
1.50x
1.75x
2.00x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
18.0x
Q113
Q213
Q313
Q413
Q114
Q214
Q314
Q414
Q115
Q215
Q315
Q415
Q116
Q216
Q316
Q416
Q117
Q217
Q317
Q417
Q118
Q218
EV/EBITDA 10.6x 10.3x 11.6x 11.6x 12.1x 11.5x 10.6x 10.3x 11.3x 10.8x 11.1x 9.9x 10.0x 9.6x 9.9x 10.4x 10.3x 10.1x 10.0x 9.8x 9.7x 10.3x
EV/Revenue 1.4x 1.5x 1.6x 1.5x 1.6x 1.7x 1.6x 1.6x 1.8x 1.7x 1.7x 1.7x 1.6x 1.6x 1.8x 2.0x 2.0x 1.9x 2.0x 2.0x 1.8x 1.7x
0.00x
0.25x
0.50x
0.75x
1.00x
1.25x
1.50x
1.75x
2.00x
2.25x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
18.0x
Q113
Q213
Q313
Q413
Q114
Q214
Q314
Q414
Q115
Q215
Q315
Q415
Q116
Q216
Q316
Q416
Q117
Q217
Q317
Q417
Q118
Q218
EV/EBITDA 29.3x 22.6x 17.5x 17.1x 14.9x 18.0x 14.0x 17.2x 15.3x 14.5x 13.6x 13.2x 12.4x 12.6x 12.6x 11.8x 12.5x 12.6x 13.5x 14.9x 11.8x 11.5x
EV/Revenue 1.6x 1.4x 1.4x 1.3x 1.3x 1.4x 1.3x 1.2x 1.3x 1.3x 1.2x 1.2x 1.2x 1.1x 1.1x 1.1x 1.1x 1.1x 1.0x 1.3x 1.1x 1.1x
0.00x
0.25x
0.50x
0.75x
1.00x
1.25x
1.50x
1.75x
2.00x
0.0x
3.0x
6.0x
9.0x
12.0x
15.0x
18.0x
21.0x
24.0x
27.0x
30.0x
Q113
Q213
Q313
Q413
Q114
Q214
Q314
Q414
Q115
Q215
Q315
Q415
Q116
Q216
Q316
Q416
Q117
Q217
Q317
Q417
Q118
Q218
EV/EBITDA 13.0x 13.3x 15.5x 13.7x 12.9x 14.2x 11.8x 13.0x 13.2x 13.0x 12.9x 13.3x 13.6x 14.1x 12.1x 11.2x 11.6x 11.6x 12.6x 13.0x 14.1x 15.7x
EV/Revenue 0.9x 0.8x 0.9x 0.8x 0.9x 0.8x 0.7x 0.7x 0.8x 0.8x 0.8x 0.9x 0.8x 0.7x 0.8x 0.7x 0.8x 0.8x 1.0x 0.9x 0.8x 0.8x
0.00x
0.25x
0.50x
0.75x
1.00x
1.25x
1.50x
1.75x
2.00x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
18.0x
8
Building Products Insider
Industry Valuations
Relative Valuation Trends
NOTE: Figures in bold and italic type were excluded from median and mean calculation.(1) As of 9/21/2018.(2) Market Capitalization is the aggregate value of a �rm's outstanding common stock.(3) Enterprise Value is the total value of a �rm (including all debt and equity).SOURCE: S&P Capital IQ.
($ in millions, except per share data) Current % of Market Enterprise Total Debt/ TTMCompany Name Country Ticker Stock Price (1) 52W High Capitalization (2) Value (3) Revenue EBITDA EBITDA Revenue Gross EBITDARESIDENTIAL FOCUSED BUILDING PRODUCTS MANUFACTURERSThe Sherwin-Williams Company United States NYSE:SHW $469.96 98.0% $43,654.9 $53,874.8 3.1x 19.4x 3.7x $17,225.4 43.4% 16.1%Compagnie de Saint-Gobain S.A. France ENXTPA:SGO 45.29 75.0% 24,711.6 36,081.6 0.7x 7.4x 2.8x 48,055.1 25.3% 10.0%Masco Corporation United States NYSE:MAS 38.54 83.0% 11,850.2 14,598.2 1.8x 11.4x 2.3x 8,017.0 32.8% 16.0%Fortune Brands Home & Security, Inc. United States NYSE:FBHS 55.22 75.0% 7,864.4 9,663.8 1.8x 11.4x 2.5x 5,414.7 36.5% 15.7%James Hardie Industries plc Ireland ASX:JHX 15.15 86.0% 6,729.4 7,779.6 3.6x 14.9x 2.4x 2,197.8 36.0% 24.1%Owens Corning United States NYSE:OC 58.24 60.3% 6,459.6 9,992.6 1.5x 9.4x 3.4x 6,824.0 23.9% 15.5%Trex Company, Inc. United States NYSE:TREX 79.65 87.8% 4,677.2 4,682.8 7.3x 26.0x 0.0x 640.3 42.8% 28.1%Armstrong World Industries, Inc. United States NYSE:AWI 69.70 94.9% 3,601.0 4,307.0 4.7x 13.1x 3.2x 924.1 35.6% 27.9%Simpson Manufacturing Co., Inc. United States NYSE:SSD 73.57 93.9% 3,408.1 3,256.3 3.1x 16.1x 0.0x 1,046.9 45.1% 19.3%JELD-WEN Holding, Inc. United States NYSE:JELD 25.59 60.5% 2,685.1 4,089.4 1.0x 11.2x 4.3x 4,086.0 21.8% 8.9%Masonite International Corporation United States NYSE:DOOR 66.55 87.6% 1,836.2 2,443.7 1.2x 9.6x 2.5x 2,110.6 20.5% 12.0%Gibraltar Industries, Inc. United States NasdaqGS:ROCK 46.40 94.5% 1,472.9 1,472.2 1.5x 11.5x 1.6x 1,014.1 24.2% 12.6%American Woodmark Corporation United States NasdaqGS:AMWD 83.00 55.9% 1,460.3 2,154.5 1.5x 10.9x 3.8x 1,402.4 21.3% 14.1%PGT Innovations, Inc. United States NYSE:PGTI 21.65 82.0% 1,253.9 1,405.3 2.5x 14.6x 2.2x 570.5 33.3% 16.9%Gri�on Corporation United States NYSE:GFF 17.05 69.6% 723.2 1,791.7 1.0x 12.5x 7.9x 1,863.2 26.7% 7.7%Quanex Building Products Corporation United States NYSE:NX 18.50 75.2% 650.1 847.5 1.0x 9.0x 2.2x 877.8 21.8% 10.7%Median $50.81 82.5% $3,504.5 $4,198.2 1.7x 11.5x 2.5x $1,986.9 29.7% 15.6%Mean $74.00 80.0% $7,689.9 $9,902.6 2.3x 13.0x 2.8x $6,391.9 30.7% 16.0%
COMMERCIAL FOCUSED BUILDING PRODUCTS MANUFACTURERSLennox International Inc. United States NYSE:LII $216.72 94.2% $8,724.1 $10,037.3 2.5x 16.7x 2.3x $3,954.2 29.3% 14.8%Kingspan Group plc Ireland ISE:KRX 49.00 94.9% 8,699.3 9,599.0 2.1x 17.5x 1.9x 4,583.7 28.2% 11.9%USG Corporation United States NYSE:USG 43.35 99.7% 6,058.1 6,832.1 2.1x 13.0x 2.3x 3,292.0 20.1% 14.3%Valmont Industries, Inc. United States NYSE:VMI 140.75 79.8% 3,154.0 3,458.7 1.2x 10.0x 2.9x 2,776.8 24.7% 12.4%AAON, Inc. United States NasdaqGS:AAON 39.85 92.0% 2,082.8 2,058.4 4.8x 26.8x 0.0x 426.5 25.7% 18.0%NCI Building Systems, Inc. United States NYSE:NCS 15.80 67.7% 1,046.0 1,411.7 0.7x 8.0x 2.3x 1,915.7 23.3% 9.2%Forterra, Inc. United States NasdaqGS:FRTA 7.97 64.8% 511.8 1,823.0 1.2x 11.9x 9.4x 1,511.5 16.6% 9.4%Median $43.35 92.0% $3,154.0 $3,458.7 2.1x 13.0x 2.3x $2,776.8 24.7% 12.4%Mean $73.35 84.7% $4,325.1 $5,031.5 2.1x 14.8x 2.0x $2,637.2 24.0% 12.9%
BUILDING PRODUCTS DISTRIBUTORSThe Home Depot, Inc. United States NYSE: HD $212.39 98.6% $243,003.5 $265,011.5 2.5x 15.4x 1.5x $104,319.0 34.2% 16.5%Lowe's Companies, Inc. United States NYSE:LOW 116.84 99.6% 94,757.2 108,320.2 1.5x 13.5x 2.0x 70,511.0 34.2% 11.4%Ferguson plc Switzerland LSE:FERG 84.86 99.4% 19,612.0 20,917.6 1.0x 13.2x 2.2x 22,268.1 29.1% 7.7%Watsco, Inc. United States NYSE:WSO 175.94 91.2% 6,064.9 6,410.0 1.4x 16.4x 0.4x 4,453.3 24.4% 8.6%Beacon Roo�ng Supply, Inc. United States NasdaqGS:BECN 39.36 59.2% 2,680.9 6,065.0 1.1x 14.8x 7.4x 5,772.4 24.7% 7.1%Builders FirstSource, Inc. United States NasdaqGS:BLDR 15.68 67.4% 1,798.9 3,753.9 0.5x 9.2x 4.8x 7,448.2 24.1% 5.5%Lumber Liquidators Holdings, Inc. United States NYSE:LL 17.74 45.2% 507.2 531.0 0.5x 18.9x 1.2x 1,062.3 35.6% 2.6%CanWel Building Materials Group Ltd. Canada TSX:CWX 4.41 76.0% 342.8 626.3 0.6x 10.6x 4.8x 965.7 14.9% 6.0%BlueLinx Holdings Inc. United States NYSE:BXC 34.93 75.3% 324.5 1,123.9 0.5x 23.3x 16.7x 2,243.4 12.7% 2.1%Huttig Building Products, Inc. United States NasdaqCM:HBP 5.01 64.6% 130.6 308.5 0.4x 71.7x 41.7x 800.2 20.2% 0.5%Median $37.15 75.6% $2,239.9 $4,909.5 0.8x 13.5x 2.1x $5,112.8 24.6% 6.5%Mean $70.72 77.6% $36,922.2 $41,306.8 1.0x 13.3x 3.0x $21,984.4 25.4% 6.8%
TTM Enterprise Value / TTM Margins
9
Building Products Insider
Industry Valuations
Relative Valuation Trends
NOTE: Figures in bold and italic type were excluded from median and mean calculation.(1) As of 9/21/2018.(2) Market Capitalization is the aggregate value of a �rm's outstanding common stock.(3) Enterprise Value is the total value of a �rm (including all debt and equity).SOURCE: S&P Capital IQ.
($ in millions, except per share data) Current % of Market Enterprise Total Debt/ TTMCompany Name Country Ticker Stock Price (1) 52W High Capitalization (2) Value (3) Revenue EBITDA EBITDA Revenue Gross EBITDALUMBER AND WOOD MANUFACTURERSWeyerhaeuser Company United States NYSE:WY $33.01 86.0% $25,011.0 $30,545.0 4.0x 14.1x 3.0x $7,626.0 28.1% 28.5%West Fraser Timber Co. Ltd. Canada TSX:WFT 60.21 79.4% 4,365.6 4,648.9 1.0x 4.2x 0.5x 4,425.6 42.6% 24.5%Louisiana-Paci�c Corporation United States NYSE:LPX 28.25 87.8% 4,031.7 3,406.5 1.2x 4.3x 0.5x 2,931.0 33.4% 27.1%Norbord Inc. Canada TSX:OSB 35.08 76.9% 3,040.2 3,295.7 1.3x 3.8x 0.7x 2,457.0 34.8% 34.3%Canfor Corporation Canada TSX:CFP 20.34 77.2% 2,616.6 2,735.2 0.7x 3.4x 0.4x 3,867.6 37.9% 20.7%Universal Forest Products, Inc. United States NasdaqGS:UFPI 35.52 89.7% 2,189.2 2,472.8 0.6x 9.9x 1.2x 4,311.0 13.2% 5.8%Median $34.05 82.7% $3,535.9 $3,351.1 1.1x 4.3x 0.6x $4,089.3 34.1% 25.8%Mean $35.40 82.8% $6,875.7 $7,850.7 1.5x 6.6x 1.0x $4,269.7 31.7% 23.5%
AGGREGATES AND CONCRETE PRODUCERSLafargeHolcim Ltd Switzerland SWX:LHN $47.58 76.1% $28,417.3 $48,517.1 1.8x 27.3x 14.7x $26,655.5 29.7% 4.8%CRH plc Ireland ISE:CRG 33.15 85.3% 27,399.1 37,516.6 1.3x 10.0x 3.2x 29,534.5 32.6% 12.4%HeidelbergCement AG Germany DB:HEI 81.49 72.3% 16,169.9 29,469.2 1.4x 8.4x 4.2x 20,201.8 60.1% 15.8%Vulcan Materials Company United States NYSE:VMC 115.55 81.8% 15,283.6 18,365.5 4.5x 18.3x 3.1x 4,126.8 25.1% 24.3%Martin Marietta Materials, Inc. United States NYSE:MLM 192.18 79.6% 12,109.6 15,306.8 4.0x 14.7x 3.1x 3,814.4 25.9% 27.3%CEMEX, S.A.B. de C.V. Mexico NYSE:CX 7.06 75.8% 10,638.3 22,682.2 1.6x 8.7x 4.3x 13,567.5 34.3% 18.3%Boral Limited Australia ASX: BLD 4.99 83.5% 5,949.1 7,726.6 1.9x 10.9x 2.9x 4,239.0 33.2% 15.5%Eagle Materials Inc. United States NYSE:EXP 87.25 71.2% 4,169.4 4,806.1 3.4x 10.4x 1.6x 1,414.2 24.3% 29.7%Buzzi Unicem SpA Italy BIT:BZU 22.29 77.0% 4,159.9 5,136.4 1.6x 7.1x 3.0x 3,258.0 38.4% 18.9%Wienerberger AG Austria WBAG:WIE 25.07 87.7% 2,761.6 3,677.0 1.0x 8.0x 2.9x 3,731.1 33.9% 12.1%Grupo Cementos de Chihuahua, S.A.B. de C.V. Mexico BMV:GCC * 6.60 92.2% 2,195.3 2,689.7 2.8x 10.2x 2.6x 923.2 28.2% 27.1%Summit Materials, Inc. United States NYSE:SUM 19.05 55.9% 2,126.5 3,918.6 1.9x 9.7x 4.5x 2,039.5 32.0% 19.8%Titan Cement Company S.A. Greece ATSE:TITK 25.26 84.8% 1,934.8 2,891.0 1.7x 9.8x 3.7x 1,685.3 28.1% 17.7%U.S. Concrete, Inc. United States NasdaqCM:USCR 51.85 60.0% 871.6 1,622.2 1.1x 9.9x 4.6x 1,428.0 20.0% 11.4%Median $29.20 78.3% $5,059.3 $6,431.5 1.7x 9.9x 3.1x $3,772.7 30.9% 18.0%Mean $51.38 77.4% $9,584.7 $14,594.7 2.1x 10.5x 3.4x $8,329.9 31.8% 18.2%
HOME BUILDERSLennar Corporation United States NYSE:LEN $50.13 69.5% $16,155.1 $26,572.0 1.7x 16.7x 7.3x $15,486.9 19.3% 10.0%D.R. Horton, Inc. United States NYSE:DHI 42.41 79.5% 15,963.0 18,094.1 1.2x 9.0x 1.5x 15,722.0 21.0% 12.8%NVR, Inc. United States NYSE:NVR 2,583.92 69.8% 9,372.0 9,550.9 1.4x 9.7x 0.6x 6,818.7 20.1% 14.4%PulteGroup, Inc. United States NYSE:PHM 26.26 74.6% 7,458.3 10,349.7 1.1x 7.3x 2.3x 9,461.3 24.1% 15.0%Toll Brothers, Inc. United States NYSE:TOL 35.85 68.0% 5,283.0 8,407.0 1.3x 9.9x 4.6x 6,715.9 21.3% 11.7%Cavco Industries, Inc. United States NasdaqGS:CVCO 247.85 94.7% 2,247.5 2,115.0 2.3x 26.4x 0.7x 910.8 18.6% 8.8%KB Home United States NYSE:KBH 25.37 65.4% 2,224.7 3,908.7 0.9x 11.0x 6.6x 4,520.2 17.8% 7.9%Taylor Morrison Home Corporation United States NYSE:TMHC 19.19 67.5% 2,137.6 3,263.2 0.8x 8.6x 3.9x 3,940.9 19.0% 9.3%Meritage Homes Corporation United States NYSE:MTH 43.15 77.7% 1,754.0 2,895.9 0.9x 10.1x 4.6x 3,386.6 18.5% 8.4%M.D.C. Holdings, Inc. United States NYSE:MDC 30.94 87.9% 1,746.2 2,451.0 0.9x 10.6x 4.7x 2,725.6 19.1% 8.5%Century Communities, Inc. United States NYSE:CCS 27.40 76.1% 825.3 1,781.5 1.0x 10.6x 6.7x 1,837.4 19.9% 7.9%M/I Homes, Inc. United States NYSE:MHO 25.26 67.5% 721.7 1,482.1 0.7x 8.8x 4.9x 2,094.1 20.2% 8.0%William Lyon Homes United States NYSE:WLH 17.59 53.4% 668.0 2,249.8 1.1x 13.7x 9.0x 2,007.8 18.2% 8.0%Beazer Homes USA, Inc. United States NYSE:BZH 11.20 48.2% 360.4 1,550.6 0.8x 16.8x 14.4x 2,012.2 16.6% 4.6%Hovnanian Enterprises, Inc. United States NYSE:HOV 1.68 49.3% $251.2 $1,821.7 0.9x 38.3x 43.9x 2,098.1 13.1% 1.8%Median $42.41 69.8% $7,458.3 $9,550.9 1.3x 10.1x 4.6x $6,818.7 20.1% 11.7%Mean $430.26 74.5% $8,386.2 $11,285.3 1.4x 11.0x 4.4x $8,519.4 20.3% 11.5%
TTM Enterprise Value / TTM Margins
10
Building Products Insider
Industry Valuations
Sector Performance
By Sector
Overall Market
Source: S&P Capital IQ.As of 9/21/2018.
-6.1%
3.2%
14.9%
-4.3%
-15.1%
4.4%
21.5%
35.1%
-0.2%
-14.3%
3.5%
39.8%
61.4%
72.3%
38.9%
5.2%
26.6%
60.4%
93.9%
148.9%
23.4%
12.4%
62.1%
-20%
20%
60%
100%
140%
180%
Residential-Focused BuildingProducts
Commercial-Focused BuildingProducts
Building Products Distributors Lumber and Wood Manufacturers Aggregates and Cement Producers Home Builders
Retu
rns
YTD 1 Year 3 Year 5Y
8.7% 7.7%
17.2%19.6%
48.9%
62.0%
71.3%73.1%
0%
20%
40%
60%
80%
S&P 500 DJIA
Retu
rns
YTD 1 Year 3 Year 5Y
11
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• Motors and Drives
• Gears and Gearing Systems
• Industrial Equipment
• Machine Tools
• Material Handling,
Cranes, and Other
• Power Generation
and Management
• Specialty Vehicles
• Lighting and
Lighting Fixtures
• Adhesives
• Coatings
• Sealants
• Lubricants
• Ceramics
• Aggregates and Minerals
• Industrial Technology
• Plastic Injection, Blow, and Compression Molding
• Distribution
• Testing, Measuring, and Sensing Equipment
Representative Building Products Transactions
Global Industrials
a wholly-ownedsubsidiary of
acquired by
Lauren International, Inc.acquired byacquired by
acquired by
a portfolio company ofacquired by
a portfolio company of
acquired by
a portfolio company of
a subsidiary of
acquired by
a portfolio company of
GRAHAM PARTNERS
a portfolio company of
acquired by
a portfolio company of
and
acquired by
a portfolio company of
and
a portfolio company of
merged with
Ironwood Manufacturing Fund
BGL Contacts
bglco.com globalma.com
Andrew K. PetrykIndustrials Group [email protected]
Kevin H. SargentDirector & [email protected]
a portfolio company of
FinancialRestructuring
acquired
acquired by
Lumber & Building Supplies, Inc.acquired by
acquired by
acquired
a subsidiary of
Castle HarlanPartners IV L.P.
acquired by
a subsidiary of
Kawada Industries USA
Pyramid LLC
RestructuringAdvisory
acquired
Admission to AIM£135 million market capitalization
£94 million raise
acquired by
L. Oberholzer AGacquired acquired acquired by
MinorityShareholders
obtained financingprovided by recapitalized by
acquired by
Lafarge Ereğli Çimento A.Ş.
acquired by merged with
acquired byacquired by
acquired by
acquired byacquired by
acquired by
Participation
acquired by
Consumables Businessof