CLEVELAND and CHICAGO, May 3, 2017 /PRNewswire/ -- The Building Products market is exhibiting strengthening fundamentals against a backdrop of economic growth, improving employment, and rising consumer confidence, according to the Building Products Insider, an industry report released by Brown Gibbons Lang & Company (BGL) www.bglco.com. Renewed optimism is fueling investor appetite, driving an active M&A market.
Positive secular trends in the construction and remodeling markets are driving strong performance in building products companies. Investor sentiment remains optimistic, buoyed by expectations of sustained economic growth, with investment activity continuing at a brisk pace as acquisitions drive value creation.
Strategic and financial buyers continue to be aggressive on the heels of a robust year for deal making in 2016, exhibiting broad interest across all industry subsectors:
- U.S. assets remain attractive targets for international buyers looking to tap faster growth and anticipated increases in infrastructure spending. Boral Limited's announced acquisition of Headwaters headlined corporate M&A, with Melrose Industries (Nortek), dormakaba (Stanley Black & Decker assets, Mesker Openings), and aluplast (Chelsea Building Products) also participating in cross-border deals during the last 12 months.
- Private equity funds announced a number of new platform investments, indicative of a positive growth outlook and healthy risk appetite in the sector. American Securities (Henry Company), Blue Wolf Capital Partners (Novo Building Products), Graycliff Partners (Oberfields), Madison Dearborn Partners (U.S. LUMBER), and Sun Capital Partners (Arrow Tru-Line) were among the recently announced platforms. Financial sponsors will continue to be motivated by a sense of urgency to deploy capital, with acquisitive growth central to their investment thesis.
About Brown Gibbons Lang & Company
Brown Gibbons Lang is a leading independent investment bank serving the middle market. BGL specializes in mergers and acquisitions advisory services, debt and equity placements, financial restructuring advice, and valuations and fairness opinions, with global industry teams in Business Services, Consumer, Environmental & Energy Services, Healthcare & Life Sciences, Industrials, and Real Estate. BGL has offices in Chicago, Cleveland, and Philadelphia and real estate offices in Chicago, Cleveland, Irvine, and San Antonio, in addition to Global M&A partner offices in more than 50 countries across 5 continents. BGL is able to deliver to our clients unparalleled access to strategic relationships, investors, and opportunities globally. For more information, please visit www.bglco.com.
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SOURCE Brown Gibbons Lang & Company