Capstone Looks at Aggregates Market

Jan. 15, 2023 – Capstone Partners’ Building Products & Construction Services Team shared its latest Rock Products Aggregates Industry Market Report. The Aggregates sector has continued to report robust revenue growth, fueled by favorable pricing, strong construction demand, and federal funding. The merger and acquisition (M&A) market has remained healthy with public companies and private equity firms actively refocusing their product portfolios to enhance aggregates supply capabilities.

Several additional key takeaways are outlined below.

  • Select public companies in the sector have experienced record revenues amid rising inflation and materials costs.
  • An increase in federal contracting for improvements in infrastructure is expected to result in billions of dollars in potential revenue for sector participants.
  • M&A transaction volume in year-to-date (YTD) has outpaced YTD 2021 levels, as transaction flow has continued to surpass historical and pre-COVID levels.
  • Public companies in the sector have continued to consolidate mid–sized regional aggregates suppliers into their national or international networks.
  • Aggregates prices and volume have continued to increase, showcasing the ability of aggregates suppliers to defer rising costs to the consumer.

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