Industry Trends
Largest Transactions Closed
- Target
- Buyer
- Value($mm)
Advised Western Milling in their sale to the Western Milling ESOP Trust
Executive Summary
M&A activity in Building Products & Construction held firm in Q3 2025, with 789 transactions closed over the trailing 12 months—up 6.9% compared to Q3 2024.
Strategic acquirers drove 86.9% of volume, while private equity sustained 13.0% as dry-powder deployment remained steady.
Valuations were stable, with median TEV/EBITDA at 11.4x and TEV/Revenue at 1.91x, signaling continued buyer appetite for scaled, margin-resilient platforms.
Activity was particularly strong in siding, infrastructure, and HVAC, highlighted by James Hardie’s $8.8B purchase of AZEK and CRH’s $2.1B acquisition of Eco Material Technologies, underscoring demand for category leaders and diversified growth platforms.
Market Dynamics
Despite a 2.8% year-over-year dip in U.S. construction spending through July, valuations held steady as buyers prioritized companies positioned for federally funded infrastructure, energy transition, and resilience projects. Transactions focused on supply chain access, while private equity focused on fragmented niches such as HVAC, roofing, and testing, where platform-and-add-on strategies can quickly scale earnings. Prefabrication and modular solutions continued to attract attention, helping mitigate labor shortages and project delays.
Buyer Landscape
Strategic Acquirers: Strategics completed 667 of 789 transactions (86.9%), targeting electrical contracting, paving, and metal-building manufacturers to expand service breadth and regional reach. Demand was especially strong for platforms with labor capacity and infrastructure exposure.
Financial Buyers: Private equity sponsors closed 100 deals (13.1%), concentrating on niche HVAC, roofing, and civil-engineering platforms where bolt-on acquisitions and operational upgrades can drive scalable value.
Industry Comparison
Building Products & Construction accounted for 5.9% of all U.S. M&A in Q3 2025 and 5.7% on an LTM basis, holding steady year-over-year. Sector activity continued to outperform other cyclical industries, buoyed by infrastructure-linked demand and energy-transition tailwinds.
Geographic Expansion
Top U.S. States: Texas (90), Florida (72 deals), and California (62) led transaction activity in Q3 2025. Growth was driven by heavy infrastructure spending and ongoing demand for climate-resilient retrofits.
Featured State Activity: Midwestern states such as Ohio and Illinois showed rising activity as buyers targeted manufacturers and distributors positioned near key logistics corridors. This trend underscores continued interest in supply-chain resilience and regional platforms that can scale with federally funded infrastructure and energy transition projects.
Notable Transactions
Largest Transactions Closed
| Target | Buyer | Value ($mm) |
| Cupertino Electric, Inc. | Quanta Services, Inc. |
$1,705.00 |
| Trachte, LLC | nVent Electric plc | $695.00 |
| Mueller, Inc. | Cornerstone Building Brands, Inc. | $475.00 |
| Wilsonart International Holdings, LLC | Clayton, Dubilier & Rice, LLC | $398.00 |
| ODC Construction, LLC | Synergos Companies | $250.00 |
| Parsec, LLC | Universal Logistics Holdings, Inc. | $193.60 |
Other Strategic Buyer Transactions Closed
| Target | Buyer | Value ($mm) |
| Public carrier wireless telecommunications infrastructure business of Black & Veatch Holding Company | Ansco & Associates, LLC | $150.00 |
| Xtreme Powerline Construction, LLC | Aecon Utilities, Inc. | $73.00 |
| ThermaSol Steam Bath, LLC | Harvia Oyj | $30.40 |
| Euroview Enterprises LLC/Contract Mirror and Supply Co/CLM Solutions, LLC | Installed Building Products, Inc. | $20.20 |
| Certain Assets of iSun, Inc. | Original Clean Energy | $10.00 |
| JT Russell & Sons asphalt plant on N.C. 8 near Denton | Southeast Emulsions Inc. | $8.40 |
| AusTex Aggregates, LLC | Panamera Holdings Corporation | $2.75 |
| MECHANICAL ENGINEERING & CONSTRUCTION, LLC | CoolSys, Inc. | n/a |
| U.S.T. Services Corporation | SPATCO Energy Solutions, LLC | n/a |
| A to Z Dependable Services | Sila Services, LLC | n/a |
Other Financial Buyer Transactions Closed
| Target | Buyer | Value ($mm) |
| Bishop, Inc. | Equity Residential | $108.00 |
| 275 Park Ave. in Clinton Hill | Thor Equities, LLC | $58.50 |
| Premier Building Associates, LLC | Boyne Capital Management, LLC | n/a |
| Scatter Wash Battery Energy Storage Project in Arizona | Copenhagen Infrastructure Partners P/S | n/a |
| Franklin Structures, LLC | Silver Canyon Group, LLC | n/a |
| Pavement Maintenance Group LLC | Renovo Capital, LLC | n/a |
| Proenergy Holding Company, Inc. | Energy Capital Partners, LLC | n/a |
| Stratus Team LLC | Brightstar Capital Partners, L.P. | n/a |
| Action Elevator Company, LLC | H.I.G. Capital, LLC | n/a |
Source S&P Capital IQ as of 10/8/2025 and PCE Proprietary Data
Emerging Trends
Key trends shaping Building Products and Construction M&A:
- Energy Efficiency & Codes
Tighter building codes and rebate programs are sustaining demand for energy-efficient products. Despite speculation that the new administration may ease off green initiatives, key incentives and tax credits remain in place, keeping buyers focused on companies whose products qualify. - Digital Tools & Automation to Offset Labor & Cost Pressures
With labor shortages and wage growth squeezing margins, firms are leaning into digital tools (estimators, scheduling software, building information modeling ) and automation to boost efficiency, reduce rework, and manage complexity. Efficiency gains are increasingly part of the value proposition. - Building Products Distribution Under Pressure
Distributors face rising expectations from contractors and digital platforms. The focus is on faster delivery, online ordering, and value-added services like jobsite logistics and customization. - Subsector: Modular & Prefabricated Construction
The market for modular & prefab construction is growing fast—valued at about USD $173.5B in 2025, and projected to reach ~$302B by 2035 (≈ 5.7% CAGR). - Subsector: Roofing Consolidation Trend
Tariffs, workforce shortages, and rapid tech adoption are reshaping the roofing industry. Contractors and distributors are consolidating to gain scale, secure talent, and invest in digital tools to strengthen resilience and position businesses for premium valuations.
Outlook for Next Quarter
Opportunities: Energy-efficiency incentives are creating real momentum in windows, doors, and insulation. While higher energy costs add appeal, demand is being driven by federal programs such as the Inflation Reduction Act’s Energy Efficient Home Improvement Credit, along with state rebates and updated building codes, which translates into steadier demand for companies positioned in these categories.
Risks: Margins remain under pressure as wage inflation and a shortage of skilled crews drive up labor costs. At the same time, tariffs and raw material price swings make it harder to predict expenses, forcing companies to be disciplined about passing costs through to customers.
Predicted Activity: Deal activity is expected to stay measured but steady. Buyers are showing the most interest in businesses that can demonstrate pricing power, benefit from energy-efficiency incentives, or have strong digital capabilities in the pro channel. At the same time, caution remains in areas tied to nonresidential construction, where design indicators suggest slower project starts.
PCE Transactions
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