Building Products M&A Activity to Grow in 2025
- Editor
- Jan 30
- 2 min read
What's Happening: The building products M&A market is expected to see continued growth in 2025, according to a report from Brown Gibbons Lang & Company (BGL). The growth is driven by favorable long-term fundamentals in the U.S. housing market, including an aging housing stock and a growing deficit of affordable housing.
The Key Moves:
Strategic buyers are actively pursuing acquisitions to enhance growth, diversification, and product portfolios.
Private equity firms, backed by over $1.0 trillion in dry powder, are poised to play an increasing role as both buyers and sellers.
Market fragmentation across window & door, flooring, cabinetry, and roofing sectors is expected to drive consolidation.
By The Numbers :
Private equity firms have more than $1.0 trillion in dry powder available for investments.
The report examines trends in four major sub-sectors: window & door, flooring, cabinetry, and roofing.
BGL has investment banking offices in Boston, Chicago, Cleveland, Los Angeles, and New York.
Key Quotes:
The long-term thesis builds as the nation's housing stock ages and the deficit of affordable housing grows, setting the stage for an overdue correction.
Significant capital is available for investment, while a large number of assets held in portfolios contend with extended hold periods and will be under pressure to seek exits.
With limited scaled providers, the markets are ripe for consolidation as smaller players navigate an evolving regulatory and trade environment under the new Administration.
The Bottom Line: The building products M&A market is positioned for growth in 2025, driven by strategic buyers, private equity involvement, and market fragmentation. Long-term housing market fundamentals and the need for consolidation in key sub-sectors are expected to fuel M&A activity.
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