June 1, 2022 – Capstone Partners has released its latest Aggregates Industry Market Report, offering insight into merger and acquisition activity, capital markets trends, aggregate production and pricing. The report is provided exclusively to Rock Products. The Aggregates sector has continued to benefit from robust construction demand, despite persistent supply chain disruptions and rising inflation. The merger and acquisition (M&A) market has remained healthy with public companies actively refocusing their product portfolios. Several key report takeaways are outlined below.
- Leading sector players have captured strong revenue growth, however, elevated costs have negatively impacted margins.
- Surging demand for aggregates intensive projects, including warehouses and data centers, have provided sector participants with valuable revenue opportunities.
- M&A activity has outpaced the prior year as public companies have focused on divesting non-core assets and bolstering the high margin areas of their businesses.
- Middle market M&A purchase multiples in the Aggregates sector have demonstrated strength, outpacing the broader Building Products & Construction Services industry.
- Prices across all Capstone-tracked aggregate materials have increased, reflecting the current inflationary environment.