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www.harriswilliams.com
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 andregulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.
BUILDING PRODUCTS & MATERIALS
0
INDUSTRY UPDATE │ AUGUST 2015
PAGE |
www.harriswilliams.com
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 2015. 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 2015
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.
Construction
Materials
Building
Products
Distribution &
Services
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
Select Atlanta, Georgia
aggregates assets of LaFarge
SA have been acquired by
has been acquired by
a division of
has been acquired by
a portfolio company ofa subsidiary of
Aggregates
Asphalt
Aluminum
Bricks
Clay
Glass
Precast Concrete /
Ready Mix
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
has been acquired by
a portfolio company of
has been acquired by
has been acquired by
a portfolio company of
a division of
a portfolio company of
has been acquired by
a subsidiary of
has been acquired by
a portfolio company of
www.harriswilliams.com
a portfolio company of
has been acquired byhas been acquired by
a portfolio company ofa portfolio company of
has been acquired by
a portfolio company of
has been acquired by
has been recapitalizedby
a portfolio company of
PAGE |
www.harriswilliams.com
WHAT WE’RE READING
2
JUNE CONSTRUCTION SPENDING POSTS SMALLEST GAIN IN FIVE MONTHS, BUT UP 12% ANNUALLY
BUILDING MATERIAL PRICES FALL DESPITE RISING CONSTRUCTION SPENDING
BUILDERS’ SENTIMENT INCHES UP
OLDCASTLE PARENT CLOSES ON LAFARGE, HOLCIM ASSETS
Forbes Business 8/3/2015
Construction spending in the U.S. rose 12% year-over-year in June, the Commerce Department said Monday. But on amonthly basis, the gain was the smallest in five months. Spending in June was nearly flat with May’s level, inchingup just 0.1% to a seasonally adjusted annual rate of $1,064.6 billion. That was the smallest rise for construction spendingsince January. But June’s total is 12% higher than the estimate for June 2014, when (seasonally adjusted, annual)construction spending stood at $950.3 billion. The June increase fell short of the consensus 0.6% bump forecast byeconomists surveyed ahead of the release by Bloomberg .
Read the full article here.
Construction Dive 8/17/2015
The July numbers bucked conventional wisdom, which says prices of building materials should spike whenconstruction spending is up and fall when spending is down. But nonresidential construction spending is on anupswing, rising by approximately 11.5% between June 2014 and June 2015, and multifamily construction is booming inmost U.S. cities. Yet the prices of concrete, fabricated structural metal products, iron and steel, prepared asphalt,metals, and nonferrous wire and cable fell slightly last month. Crude energy materials and crude petroleum pricestumbled more substantially.
Read the full article here.
NAHB 8/17/2015
The August read on builder sentiment continued its slow rise to a nine plus year high of 61, up one point from July. Theindex has been at 60 or more since June and above the tipping point of 50 since July 2014. Components measuringcurrent and future home sales also rose to or remained at new heights not seen since late 2005. The current salesindex rose one point to 66 and the expected sales component remained at 70 after rising to that level in July.Regional indicators (as measured by a three-month moving average) also rose or remained at heightened levels.
Read the full article here.
Rock Journal 8/6/2015
CRH has closed on a portfolio of Lafarge S.A. and Holcim Ltd. cement, concrete and aggregate production assets in10 countries across the Americas and Europe. At a $7.2 billion enterprise value, the transaction is among the largest todate involving publicly traded, global heavy building materials companies – trailing Cemex-Rinker andHeidelbergCement-Hanson ($15 billion–$16 billion; 2007) and Lafarge-Orascom ($12 billion, 2008). The acquired assetsrepresent the bulk of properties Lafarge and Holcim officials agreed to unload in advance of an early-July mergerforming LafargeHolcim Ltd. The assets span nearly 700 sites, approximately 10 percent of which are cement, readymixed concrete and aggregate plants, plus 18 terminals, under or tied to Holcim (Canada) Inc. Those propertiesextend to the north a solid footprint Oldcastle Materials enjoys throughout Great Lakes markets in the U.S.
Read the full article here.
U.S. HOUSING STARTS NEAR EIGHT-YEAR HIGH, BUT PERMITS FALL
Reuters 8/18/2015
WASHINGTON, Aug 18 (Reuters) - U.S. housing starts rose to a near eight-year high in July as builders ramped upconstruction of single-family homes, suggesting that the economy was firing on almost all cylinders. The CommerceDepartment report on Tuesday added to solid payrolls, retail sales and industrial output data in suggesting theeconomy got off to a strong start in the third quarter. The steady flow of upbeat economic reports has bolstered viewsthat the Federal Reserve will raise interest rates in September. "The Fed is likely to take further reassurance that housingis on an improving trend and this should add to the view that the economy is in more normal territory," said JohnRyding, an economist at RDQ Economics in New York.
Read the full article here.
BUILDING PRODUCTS & MATERIALS
INDUSTRY UPDATE │ AUGUST 2015
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www.harriswilliams.com
11.8x
11.2x
9.8x
Building Products Distributors
Building Products
Building Materials
PUBLIC MARKETS
BUILDING PRODUCTS & MATERIALS
INDUSTRY UPDATE │ AUGUST 2015
3
MEDIAN TEV / 2015 EBITDA
MEDIAN REVENUE GROWTH (2014 – 2015P)
MEDIAN EBITDA MARGIN (2013 – 2015P) MEDIAN EBITDA GROWTH (2014E-2015P)
MEDIAN CAPEX / REVENUE (2015E)
MEDIAN REVENUE GROWTH (2011 – 2014)
HISTORICAL STOCK PRICES (AUGUST 10TH, 2010 – AUGUST 15TH, 2015)
(50%)
0%
50%
100%
150%
200%
Aug-10 Feb-11 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15
Building Materials Index Building Products Index Building Products Distributors Index S&P 500 Index
9.9%
8.7%
7.3%
Building Products Distributors
Building Products
Building Materials
3.8%
7.1%
2.9%
Building Products Distributors
Building Products
Building Materials
4.9%
12.8%
15.0%
Building Products Distributors
Building Products
Building Materials
8.9%
14.7%
9.9%
Building Products Distributors
Building Products
Building Materials
1.2%
2.7%
5.8%
Building Products Distributors
Building Products
Building Materials
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PUBLIC COMPARABLES
4
BUILDING PRODUCTS
BUILDING PRODUCTS & MATERIALS
INDUSTRY UPDATE │ AUGUST 2015
As of August 17, 2015 ($ in Millions, except per share amounts)
Stock Performance
Current % of 2014 TEV / EBITDA
Price LTM High Mkt Cap TEV Revenue EBITDA Margin 2015 2016
ASSA ABLOY AB $19.82 91.8% $22,254 $25,038 $7,265 $1,312 18.1% 17.1x 15.6x
Mohawk Industries Inc. 206.96 99.6% 15,328 18,661 7,803 1,161 14.9% 13.6x 11.5x
Masco Corporation 27.18 95.8% 9,362 11,458 8,521 1,003 11.8% 11.0x 10.0x
Fortune Brands Home & Security, Inc. 50.98 99.9% 8,141 9,310 4,014 498 12.4% 14.7x 12.2x
Lennox International, Inc. 123.53 98.7% 5,631 6,640 3,367 387 11.5% 14.6x 12.6x
Owens Corning 46.45 99.5% 5,459 7,596 5,276 717 13.6% 9.5x 8.4x
USG Corporation 32.19 98.5% 4,666 6,562 3,724 454 12.2% 11.1x 9.6x
Kingspan Group plc 25.23 94.6% 4,445 4,623 2,289 229 10.0% 15.0x 12.7x
Armstrong World Industries, Inc. 58.73 98.0% 3,245 4,080 2,515 313 12.5% 11.0x 9.8x
Masonite International Corporation 64.64 88.2% 1,961 2,319 1,838 117 6.3% 11.7x 8.6x
Interface Inc. 25.63 94.3% 1,691 1,878 1,004 113 11.3% 12.0x 10.4x
Trex Co. Inc. 40.83 70.7% 1,312 1,346 392 84 21.4% 13.6x 11.0x
Nortek Inc. 74.63 83.0% 1,214 2,670 2,546 242 9.5% 9.1x 8.2x
American Woodmark Corp. 64.87 98.0% 1,063 901 807 57 7.0% 11.2x 9.9x
Ply Gem Holdings, Inc 14.26 93.2% 972 1,992 1,567 119 7.6% 11.5x 8.6x
Continental Building Products, Inc. 20.49 84.6% 892 1,206 425 115 27.0% 8.7x 7.6x
NCI Building Systems Inc. 11.50 53.0% 849 1,289 1,383 69 5.0% 9.7x 7.5x
Tyman plc 4.85 90.7% 827 990 547 84 15.4% 10.2x 9.3x
Quanex Building Products Corporation 19.54 89.1% 671 612 597 45 7.5% 9.2x 7.2x
PGT, Inc. 13.06 80.2% 639 785 306 44 14.2% 11.0x 9.2x
Overall Median 93.8% 12.0% 11.2x 9.7x
Overall Mean 90.1% 12.5% 11.8x 10.0x
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PUBLIC COMPARABLES
5
DISTRIBUTORS
BUILDING PRODUCTS & MATERIALS
INDUSTRY UPDATE │ AUGUST 2015
As of August 17, 2015 ($ in Millions, except per share amounts)
Stock Performance
Current % of 2014 TEV / EBITDA
Price LTM High Mkt Cap TEV Revenue EBITDA Margin 2015 2016
Wolseley plc $66.54 96.9% $16,856 $18,822 $20,129 $1,381 6.9% 11.6x 10.4x
HD Supply Holdings, Inc. 34.37 93.4% 6,961 12,167 9,009 831 9.2% 13.6x 12.2x
Beacon Roofing Supply, Inc. 36.00 99.0% 1,802 2,076 2,371 126 5.3% 12.6x 10.3x
Builders FirstSource, Inc. 14.22 91.9% 1,549 1,917 1,604 61 3.8% 22.3x 17.1x
Stock Building Supply Holdings, Inc. 19.03 75.5% 502 582 1,296 32 2.5% 13.3x 8.8x
Hardwoods Distribution Inc. 13.02 93.8% 217 254 389 22 5.7% 9.7x 9.1x
CanWel Building Materials Group Ltd. 4.19 83.5% 176 321 656 25 3.8% 12.0x 9.2x
Bluelinx Holdings Inc. 0.90 64.7% 87 564 1,979 23 1.2% NA NA
Huttig Building Products Inc. 3.13 71.1% 78 154 642 14 2.1% NA NA
Goodfellow Inc. 6.91 82.0% 59 109 409 13 3.1% NA NA
Taiga Building Products Ltd. 0.61 84.2% 20 235 1,104 35 3.1% NA NA
Overall Median 84.2% 3.8% 11.8x 10.3x
Overall Mean 85.1% 4.2% 13.6x 11.0x
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PUBLIC COMPARABLES
6
BUILDING MATERIALS
BUILDING PRODUCTS & MATERIALS
INDUSTRY UPDATE │ AUGUST 2015
As of August 17, 2015 ($ in Millions, except per share amounts)
Stock Performance
Current % of 2014 TEV / EBITDA
Price LTM High Mkt Cap TEV Revenue EBITDA Margin 2015 2016
Aggregates and Cement
LafargeHolcim Ltd. $67.36 85.0% $21,882 $33,678 $19,238 $3,755 19.5% 5.3x 5.1x
CRH plc 30.51 97.1% 25,092 28,033 22,892 1,972 8.6% 12.1x 9.7x
HeidelbergCement AG 78.53 91.7% 14,624 22,796 15,281 2,472 16.2% 7.9x 7.2x
Vulcan Materials Company 97.84 99.6% 13,022 14,993 2,994 575 19.2% 18.3x 13.9x
CEMEX, S.A.B. de C.V. 0.81 77.6% 10,314 25,825 14,228 2,482 17.4% 9.0x 7.7x
Martin Marietta Materials, Inc. 173.54 99.0% 11,727 13,343 2,679 588 22.0% 15.9x 12.4x
Eagle Materials Inc. 83.29 78.8% 4,214 4,730 1,032 284 27.5% 12.1x 9.7x
Summit Materials, Inc. 26.48 91.3% 1,293 2,297 1,204 174 14.4% 8.2x 7.1x
Median 91.5% 18.3% 10.5x 8.7x
Mean 90.0% 18.1% 11.1x 9.1x
Heavy Construction Materials
James Hardie Industries plc $13.35 90.4% $5,933 $6,238 $1,622 $348 21.5% 14.4x 12.3x
Boral Limited 4.83 94.9% 3,695 4,349 3,643 335 9.2% 9.8x 8.8x
Headwaters Incorporated 21.15 97.2% 1,562 2,039 825 134 16.2% 12.0x 10.3x
U.S. Concrete, Inc. 55.72 96.8% 823 1,089 704 70 9.9% 9.5x 7.8x
Median 95.9% 20.7% 10.9x 7.8x
Mean 94.8% 14.2% 11.4x 9.8x
Lumber and Wood Products
Weyerhaeuser Co. $30.94 83.5% $16,038 $20,333 $7,693 $1,722 22.4% 13.6x 11.1x
West Fraser Timber Co. Ltd. 41.65 69.3% 3,485 3,779 3,330 497 14.9% 8.7x 5.8x
Canfor Corp. 16.55 67.7% 2,210 2,628 2,891 442 15.3% 7.4x 4.9x
Louisiana-Pacific Corp. 16.64 89.3% 2,371 2,646 1,935 16 0.8% 44.1x 11.0x
Norbord, Inc. 17.92 80.1% 1,536 2,278 1,198 89 7.4% 21.6x 7.2x
Boise Cascade Company 30.95 70.5% 1,235 1,391 3,574 196 5.5% 8.1x 6.5x
Universal Forest Products Inc. 63.95 99.7% 1,286 1,420 2,660 130 4.9% 8.8x 8.1x
Median 80.1% 7.4% 8.8x 7.2x
Mean 80.0% 13.9% 11.9x 7.8x
Overall Median 90.4% 15.3% 9.8x 8.1x
Overall Mean 87.3% 14.4% 13.0x 8.8x
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M&A TRANSACTIONS
7
BUILDING PRODUCTS & MATERIALS
INDUSTRY UPDATE │ AUGUST 2015
Announced
DateTarget Vertical Business Description Acquirer
8/14/2015 Limestone Property on the
North Coast of British
Columbia
Building Materials Limestone Property on the North Coast of British Columbia comprises
limestone mineral property and is located in Canada.
Durango Resources Inc.
8/12/2015 Quest Construction
Products, LLC
Building Products Quest Construction Products, LLC manufactures protective systems and
coatings for the construction Industry.
Building Materials
Corporation of America,
Inc.
8/11/2015 Lindab Inc. Building Products Lindab Inc. engages in the development, manufacture, and marketing
of sheet metal products for the heating, ventilation, and air conditioning
(HVAC) industry.
Ductmate Industries, Inc.
8/4/2015 Martin Marietta Materials,
Inc., California Cement
Business Assets
Building Materials Martin Marietta Materials, Inc., California Cement Business Assets
includes the business operations manufacturing cement.
CalPortland Company, Inc.
8/4/2015 Select Aggregate and
Ready-Mixed Concrete
Facilities
Building Materials Three Aggregates Facilities and Seven Ready-Mixed Concrete
Operations in Arizona and New Mexico were acquired by Vulcan
Materials Company.
Vulcan Materials Company
8/4/2015 Beatrice Concrete
Company, Inc.
Building Products Beatrice Concrete Company, Inc. produces sand, gravel, and crushed
rock.
NEBCO, Inc.
8/4/2015 Midwest Millwork, Inc. Building Products Midwest Millwork, Inc. manufactures cabinets, doors, millwork,
windows, hardware, plywood, framing lumber, and building materials.
Bliffert Lumber & Fuel
Company, Inc.
8/3/2015 Alaska Industrial
Hardware, Inc.
Distribution Alaska Industrial Hardware, Inc. operates as a retailer and distributor of
hand and power tools, builder hardware, contractor and industrial
supplies, and maintenance and safety products in Alaska.
Bering Straits Native
Corporation
8/3/2015 MGM Industries,
Incorporated
Building Products MGM Industries, Incorporated produces custom PVC v inyl window and
door products for homeowners, builders, and remodelers.
Custom Window Systems,
Inc.
7/29/2015 Structus Building
Technologies, Inc.
Building Products Structus Building Technologies, Inc. designs and manufactures building
products for the drywall industry.
CertainTeed Gypsum, Inc.
7/29/2015 US LBM Holdings, LLC Distribution US LBM Holdings, LLC, through its subsidiaries, distributes building
materials in the Midwest, Northeast, Southeast, the Mid-Atlantic, and
Western United States.
Kelso & Company
7/29/2015 Watts Water Technologies,
Inc., Select Assets
Building Products Select assets of Watts Water Technologies, Inc., including facilities
related to brass fittings, brass & tubular and v inyl tubing product lines for
homes.
Sioux Chief Manufacturing
Company, Inc.
7/27/2015 Roofing Supply Group, LLC Distribution Roofing Supply Group, LLC distributes and markets roofing materials and
related building products in the United States.
Beacon Roofing Supply,
Inc.
7/22/2015 Interline Brands Inc. Distribution Interline Brands, Inc., together with its subsidiaries, operates as a
distributor and direct marketer of broad-line maintenance, repair, and
operations products in the United States, Canada, and Central America.
The Home Depot, Inc.
7/21/2015 Madawaska Doors, Inc. Building Products Madawaska Doors, Inc. manufactures and markets wooden doors. Plaintree Systems Inc.
7/17/2015 House of Doors, Inc. Distribution House of Doors, Inc. supplies, installs, and serv ices commercial and
residential sectional doors, rolling steel doors, dock equipment, and
wood carriage house doors.
Material Handling Serv ices,
LLC
7/15/2015 Cali Bamboo, LLC Building Products Cali Bamboo, LLC manufactures green building products for residential
and commercial projects.
High Road Capital Partners;
High Road Capital Partners
Fund I I , L.P.
7/14/2015 Better Life Technology, LLC Building Products Better Life Technology, LLC manufactures and supplies roll-out garage
and concrete basement floor covers worldwide.
Century Park Capital
Partners, LLC; Century Park
Capital Partners I I , L.P
7/1/2015 Jarv is Supply Company,
Inc.
Distribution Jarv is Supply Company, Inc. distributes industrial tooling to machine
shops in Colorado and beyond.
BlackHawk Industrial
Distribution, Inc.
7/2/2015 BD Enterprises, Inc. Distribution BD Enterprises, Inc., doing business as Single Source Cabinet Supplies,
distributes and sells laminates, millwork, and cabinetry supplies.
Richelieu Hardware Ltd.
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M&A TRANSACTIONS
8
BUILDING PRODUCTS & MATERIALS
INDUSTRY UPDATE │ AUGUST 2015
Announced
DateTarget Vertical Business Description Acquirer
6/30/2015 Advanced Flooring and
Design LLC
Building Products Advanced Flooring and Design LLC manufactures floor covering and
interior finish products to builders and homebuyers.
Interior Specialists, Inc.
6/24/2015 Golden State Window &
Door Design
Building Product
Distribution
Golden State Window & Door Design supplies doors, windows, molding,
and mantles to residential and commercial customers.
Golden State Lumber, Inc.
6/23/2015 C.H.I . Overhead Doors,
Inc.
Building Products C.H.I . Overhead Doors, Inc. manufactures residential, commercial,
rolling steel, and garage doors for residential and business applications.
KKR & Co. L.P.; KKR North
American XI Fund, L.P.
6/19/2015 Craft Equipment Company Distribution Craft Equipment Company distributes material handling, storage, and
waste reduction equipment in Alabama, Florida, Georgia, South
Carolina, and Tennessee.
Material Handling Serv ices,
LLC
6/17/2015 Anchor Block Company
and Anchor Wall Systems,
Inc.
Building Materials Anchor Block Company designs, manufactures, and sells concrete
landscape and masonry products.
Oldcastle Architectural,
Inc.
6/11/2015 Oldcastle Surfaces, Inc. Building Materials Oldcastle Surfaces, Inc. manufactures and markets countertops and
solid surfaces.
Seven Stone Surface
Fabrication, Inc.
6/10/2015 Kentec, Inc. Distribution Kentec, Inc. distributes commercial quality tools, pneumatic nailing and
stapling systems, foam insulation, and adhesives.
Southern Fastening Systems,
Inc.
6/8/2015 Rock Ridge Stone Inc. Building Materials Rock Ridge Stone Inc. quarries, manufactures, and distributes natural
stone products for outdoor applications in the residential and
commercial construction markets.
Salt Creek Capital I I , LLC
6/4/2015 A.H. Harris & Sons, Inc. Distribution A.H. Harris & Sons, Inc. distributes and sells construction supplies to
heavy and highway construction, commercial, industrial, and residential
markets.
Frontenac Company
6/3/2015 Stock Building Supply
Holdings, Inc.
Distribution Stock Building Supply Holdings, Inc., together with its subsidiaries,
distributes lumber and building materials in the United States.
Building Materials Holding
Corporation
6/3/2015 Insulation Fabricators, Inc. Building Products Insulation Fabricators, Inc. fabricates and distributes thermal and
acoustical insulation products for industrial and commercial markets.
Distribution International,
Inc.
6/2/2015 Mason Corporation Building Products Mason Corporation manufactures aluminum building products for the
residential and light commercial markets. I ts products include glass
enclosures, retractable doors, awnings, and patio covers.
Superior Metal Products
Co., Inc.
6/1/2015 ProCoat Systems, Inc. Distribution ProCoat Systems, Inc. supplies building materials to commercial and
residential construction projects in Colorado and surrounding areas.
Beacon Roofing Supply,
Inc.
6/1/2015 DuBROOK Concrete, Inc. Building Materials DuBROOK Concrete, Inc. manufactures and delivers ready-mixed
concrete in the northern Virginia market through its three ready-mixed
concrete batch plants and fleet of 42 mixer trucks.
U.S. Concrete, Inc.
5/31/2015 Thermo-Cell Industries
Limited
Building Products Thermo-Cell Industries Limited manufactures thermal and acoustical
cellulose insulation, specialty fibers, and hydroseeding mulches.
US GreenFiber, LLC
5/27/2015 Advanced Building
Products, Inc.
Building Products Advanced Building Products, Inc. manufactures and installs aluminum
replacement and storm windows. I t also engages in distributing
residential exterior building materials such as siding, and roofing.
SRS Distribution, Inc.
5/22/2015 Colonial Concrete
Company, Inc.
Building Materials Colonial Concrete Company, Inc. produces ready-mix concrete and
offers products for footing applications, light weight mixes for elevated
slabs, flyash mixes, curbs and sidewalks, and color concrete.
U.S. Concrete, Inc.
5/7/2015 Simon Contractors.,
Cheyenne, Wyoming
Asphalt Terminal
Building Materials Blueknight Energy Parterns has acquired a Cheyenne, Wyoming asphalt
terminalling facility prev iously owned by Simon Contractors, a multi-
state, heavy highway contractor.
Blueknight Energy Partners,
L.P.
5/4/2015 TruStile Doors, LLC Building Products TruStile Doors, LLC designs and manufactures doors. In addition the
company provides design, planning, and support serv ices. TruStile is
based in Denver, CO.
Marv in Windows and
Doors, Inc.
4/22/2015 Holcim Ltd., Cement
Facilities in USA
Building Materials Holcim Ltd. divested its slag cement grinding facility in Camden, NJ, and
its cement terminal in Everett, MA. The acquisition will be finalized with
the pending Holcim and LaFarge merger in 2015.
ESSROC Cement Corp.
PAGE |
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M&A TRANSACTIONS
9
BUILDING PRODUCTS & MATERIALS
INDUSTRY UPDATE │ AUGUST 2015
Announced
DateTarget Vertical Business Description Acquirer
4/22/2015 Holcim Ltd., Cement
Facilities in USA
Building Materials Holcim Ltd. divested its slag cement grinding facility in Camden, NJ, and
its cement terminal in Everett, MA. The acquisition will be finalized with
the pending Holcim and LaFarge merger in 2015.
ESSROC Cement Corp.
4/20/2015 VNS Corporation Building Products Headquartered in Vidalia, Georgia, VNS operates six full line building
material stores, a wholesale company, a one step roofing yard, two
manufacturing companies plus a construction serv ices company.
Building Materials Holding
Corporation
4/17/2015 Direct Cabinet Sales, Inc. Distribution Direct Cabinet Sales, Inc. designs, distributes, sells, and installs
kitchen/bath/storage cabinetry and related products to residential,
commercial, and new construction markets.
US LBM Holdings, LLC
4/17/2015 Rosen Materials, LLC Distribution Rosen Materials, LLC distributes residential and commercial building
products in the United States and the Caribbean.
US LBM Holdings, LLC
4/17/2015 Grabill Incorporated Building Products Grabill Incorporated manufactures designer windows and doors. Pella Corporation
4/17/2015 Lafarge North America
Inc., Cement Assets
Building Materials Lafarge North America Inc., Cement Assets comprise a cement plant in
Davenport, IA, plus seven Mississippi River cement distribution terminals
that stretch from Minneapolis to New Orleans.
Continental Cement
Company, LLC
4/15/2015 A1A Sod Sand & Soil, Inc. Distribution A1A Sod Sand & Soil, Inc. operates a retail and wholesale garden
center that offers a range of commercial and residential designs,
delivery, and installations in South Florida.
A1 Group, Inc.
4/14/2015 Security Supply
Corporation
Distribution Security Supply Corporation markets plumbing, heating, and cooling
equipments.
WinWholesale Inc.
4/13/2015 ProBuild Holdings, Inc. Distribution ProBuild Holdings, Inc. distributes lumber and building materials to
builders, contractors, and tradesmen in the United States.
Builders FirstSource, Inc.
4/7/2015 Northland Construction
Supplies Ltd.
Distribution Northland Construction Supplies Ltd. supplies goods to concrete
construction, ceramic, and masonry industries.
National Concrete
Accessories
4/2/2015 Richardson Gypsum, LLC Distribution Richardson Gypsum, LLC provides construction supplies and equipment
for construction projects.
US LBM Holdings, LLC
4/2/2015 Ferrara Brothers Building
Materials Corp.
Building Materials Ferrara Brothers Building Materials Corp. manufactures concrete. U.S. Concrete, Inc.
3/31/2015 Design Specialties, Inc. Building Products Design Specialties, Inc. manufactures glass fireplace doors. Blackthorne Partners LTD.
3/30/2015 Norcraft Companies, Inc. Building Products Norcraft Companies, Inc. manufactures kitchen and bathroom
cabinetry in the United States and Canada.
Fortune Brands Home &
Security, Inc.
3/30/2015 AFC Industries, Inc. Distribution AFC Industries, Inc. engages in the purchase, distribution, assembly, and
packaging of fasteners and related hardware products.
North Sky Capital; Incline
Equity Partners; Incline
Equity Partners I I I , L.P.
3/27/2015 PrimeSource Building
Products, Inc.
Distribution PrimeSource Building Products, Inc. distributes fasteners and building
materials.
Platinum Equity, LLC
3/26/2015 Martin Fireproofing
Corporation
Building Products Martin Fireproofing Corporation manufactures, sells, and installs
specialty roof deck solutions.
Innovative Metals
Company, Inc.
3/25/2015 Pinnacle Stone & Tile LLC Building Products Pinnacle Stone & Tile LLC manufactures and installs countertops, shower
and bath surrounds, fireplaces, vanities, floor inlays, and custom projects
in Northern California.
L.A.R.K. Industries, Inc.
3/25/2015 J & B Materials, Inc. Building Materials J & B Materials, Inc. is a supplier of drywall, metal studs, plaster, pool,
and general building materials.
GMS, Inc.
3/19/2015 Pipeline Supply, Inc. Distribution Pipeline Supply, Inc. operates as a wholesale distributor of plumbing,
HVAC, hydronics, radiant floor heating, sewer, water, and well supplies.
Dakota Supply Group, Inc.
PAGE |
REPRESENTATIVE BUILDING PRODUCTS & MATERIALS TRANSACTIONS
BUILDING PRODUCTS & MATERIALS
has been acquired by
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with
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Select Atlanta,
Georgia aggregates
assets of LaFarge SA
have been acquired
by
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has been acquired by
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The Wichita, Kansas
aggregates, concrete,
asphalt, and paving
assets
of LaFarge SA
a division of
has been acquired by
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has been acquired by
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has been acquired by
a portfolio company of
has been acquired by
Strategic
Industries, LLC
Private Investors
has been acquired by
a portfolio company of
has purchased
certain assets of
INDUSTRY UPDATE │ AUGUST 2015
has been acquired by
a portfolio company of
a portfolio company of
a portfolio company of
has been acquired by
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has been acquired by
a division of
has been acquired byhas sold certain assets to
has been acquired by
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has been acquired by
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has been acquired by
Dyad Partners
a portfolio company of
has been acquired by
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has been acquired by
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has been acquired by
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19
has been recapitalizedby
a portfolio company of
Energy, Power& Infrastructure
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Transportation & Logistics
Aerospace, Defense & Government
Services
Business Services
Building Products & Materials
Technology, Media & Telecom
Specialty Distribution
Consumer
PAGE |
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Building Products & Materials
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 at www.harriswilliams.com/industries.
11
OUR FIRM
BUILDING PRODUCTS & MATERIALS
INDUSTRY UPDATE │ AUGUST 2015
PAGE |
HARRIS WILLIAMS & CO.
12
BUILDING PRODUCTS & MATERIALS
INDUSTRY UPDATE │ AUGUST 2015
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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.
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