Aug. 15, 2023 – Capstone Partners’ Building Products & Construction Services Team has just shared its latest Aggregates Industry Market Report. Consolidation among aggregates producers has continued to drive merger and acquisition (M&A) activity to-date as sector players increasingly seek economies of scale, geographic expansion, and complementary product offerings. Several additional key takeaways are outlined below.
- Robust construction backlogs have provided healthy near-term visibility for sector players, fueling optimism in the space.
- Leading public companies have recorded strong valuations through year-to-date (YTD) 2023, outpacing the prior year from an EBITDA multiple perspective.
- Sector participants have capitalized on the favorable pricing environment, resulting in outsized returns in public equity markets.
- Strategic buyers have continued to drive M&A volume as healthy construction demand has encouraged sector consolidation.
- Private equity buyers have been increasingly selective in their acquisition pursuits, however, quality companies have maintained robust financial buyer interest.
Read the full report here.