Building Products Market Research
October 15, 2024
At A Glance
The building products industry is drawing increasing interest from PE firms, with a clear rise in sector investments. Our latest market research at Raw Selection offers key insights into PE-backed companies, highlighting major industry trends, leading states, and the most active PE players. Here’s a look at the essential findings.
PE-BACKED BUILDING PRODUCTS COMPANIES ON THE RISE
According to our research, there are currently 341 portfolio companies in the building products sector backed by Private Equity. These companies are involved in the manufacturing, distribution, and supply of materials and components essential to the construction and infrastructure sectors. The number reflects the industry’s robustness and the value that private equity sees in consolidating, growing, and innovating within this space.
A GROWING NUMBER OF PE-FIRMS IN THE SECTOR
Not only are there a significant number of portfolio companies, but 162 private equity firms are actively investing in the building products industry. This competitive field underscores the attractiveness of the sector, driven by the steady demand for construction materials and the potential for high returns as firms consolidate and expand these businesses.
TOP STATES LEADING IN PE-BACKED COMPANIES
The states of Texas, California, and Michigan stand out as the top regions where PE-backed building products companies are concentrated. Texas and California, with their booming construction and real estate markets, have long been leaders in the industry. Michigan’s presence in this top three may be attributed to its industrial base and strategic importance in supplying materials to various construction projects across the country.
KEY PE-FIRMS DOMINATING THE BUILDING PRODUCTS SECTOR
Among the firms making the most significant number of investments in building products, Baymark Partners, Riverbend Industries Inc., and Validor Capital are leading the pack. These firms have strategically positioned themselves within the sector, capitalizing on its growth potential and contributing to the consolidation of the market. By focusing on companies that supply essential products for both residential and commercial construction, these PE firms are betting on sustained long-term demand.
CONCLUSION
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162 PE firms own 341 portfolio companies in the building products space
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Growth fueled by infrastructure, homebuilding, and commercial construction demand
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PE targeting manufacturers and distributors of roofing, siding, windows, doors, and structural materials
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Active investors include Baymark Partners, Riverbend Industries, and Validor Capital
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High M&A activity and fragmentation make it ideal for roll-ups and operational improvement
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