Private Equity to Play an Increasing Role in Building Products M&A Activity in 2025

BGL’s Building Products investment banking team believes private equity is poised to play an increasing role in building products M&A activity as buyers and sellers in the market.

Backed by more than $1 trillion of dry powder and a robust direct lending market, significant capital is available for investments, with market fragmentation a driver of new platform and add-on acquisition activity. Further, 50+ Building Products assets have been held in portfolios for five years or more and are faced with increasing pressure to return capital to limited partners, driving sponsors to pursue exit opportunities more aggressively.

Despite uncertainty in the near-term outlook of the U.S. housing market, we do not expect this will slow down M&A activity in 2025. Buyers who are willing to invest in quality assets today will benefit from an overdue correction that will take many years to fully work through the market.

Our Building Products investment banking team is highly experienced in the residential, commercial construction, and infrastructure segments. We have successfully completed building products transactions across a wide range of end markets, from basic building materials such as aggregates, lumber, and pavers and pre-cast products to complex fenestration extrusions, glass fabrications, curtain wall, and highly engineered specialty coatings. Our expertise also extends to key interior and exterior products, including windows and doors, flooring, cabinetry, and other essential building components.

Led by Andrew K. Petryk, our Building Products investment banking team has worked in a variety of niches across the industry, including basic building materials, architectural building materials, and mechanical systems and components. Please reach out via our contact form below to learn more.