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BUILDING PRODUCTS & MATERIALSINDUSTRY UPDATE MARCH 2017www.harriswilliams.comInvestment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is a privatelimited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies forEngland and Wales (registration number 7078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade nameunder which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.
BUILDING PRODUCTS & MATERIALSINDUSTRY UPDATE MARCH 2017BUILDING PRODUCTS & MATERIALS GROUP OVERVIEWCONTENTSINTRODUCTIONHarris Williams & Co. is pleased to present our Building Products and MaterialsIndustry Update for March 2017. This report provides commentary and analysis oncurrent capital market trends and merger and acquisition dynamics within theglobal building products and materials industry.We hope you find this edition helpful and encourage you to contact us directly ifyou would like to discuss our perspective on current industry trends and M&Aopportunities or our relevant industry experience.OUR PRACTICEHarris Williams & Co. is a leading advisor to the building products and materialsindustry. Our significant experience covers a broad range of end markets,industries, and business models.Distribution &ServicesBuilding Products AcousticalCabinets andCountertopsCarpet and FlooringGypsum / WallboardElectrical FixturesHVACLumberPlumbing Fixtures RoofingSidingTools and HardwareWindows and Doors Architectural andEngineeringInstallation andContractingLumber andHardwarePlumbingRoofing and SidingSite DevelopmentWallboardConstructionMaterials AggregatesAluminumAsphaltBricksClayGlassPrecast / Ready-MixConcreteSteelStonea portfolio company ofBuildingProducts WHAT WE’RE READINGPUBLIC MARKETSPUBLIC COMPARABLESRelevant TransactionsCONTACTSMike HoganManaging Directormhogan@harriswilliams.com 1 (804) 915-0104Ryan NelsonManaging Directorrnelson@harriswilliams.com 1 (804) 915-0121Tim WebbManaging Directortwebb@harriswilliams.com 1 (804) 915-0128Trey PackardVice Presidenttpackard@harriswilliams.com 1 (804) 887-6017a portfolio company ofa portfolio company ofhas been acquired byhas been acquired byhas been acquired byhas been acquired byhas been acquired byDistribution &Servicesa portfolio company ofa portfolio company ofhas been acquired byhas been acquired bya portfolio company of&has been acquired byhas been acquired bya portfolio company ofConstructionMaterialsa portfolio company ofa division ofhas been acquired byhas been acquired byhas been acquired byhas been acquired byhas been acquired bySelect Atlanta,Georgiaaggregatesassets of LaFargeSA have beenacquired bya subsidiary ofwww.harriswilliams.comPAGE 1
BUILDING PRODUCTS & MATERIALSINDUSTRY UPDATE MARCH 2017WHAT WE’RE READINGBUILDERS EYE CERTIFICATIONS, PRODUCTS FOR GREENER HOMES1Construction Dive3/14/2017Homebuilders are getting greener, both in the products and practices they use and in the certifications they and theirclients seek for their finished projects, according to a new report from the National Association of Home Builders.Energy-efficient windows, high efficiency HVAC, programmable thermostats, Energy Star-rated appliances andsealed ducting were among the most commonly used green building products and practices among surveyrespondents. Solar water heaters, passive solar design and energy management systems were the least popular.Read the full article here.CONCERNS ABOUT RISKIER MORTGAGES ARE SPROUTING2CNBC3/14/2017Riskier borrowers are making up a growing share of new mortgages, pushing up delinquencies modestly and raisingconcerns about an eventual spike in defaults that could slow or derail the housing recovery.The trend is centered around home loans guaranteed by the Federal Housing Administration that typically requiredown payments of just 3% to 5% and are often used by first-time buyers. The FHA-backed loans are increasingly beingoffered by non-bank lenders with more lenient credit standards than banks.Read the full article here.CONSTRUCTION INPUT PRICES EXPAND FOR THIRD STRAIGHT MONTH3Associated Builders & Contractors3/14/2017Construction input prices expanded 0.3% on a monthly basis and 4.8% on a year-over-year basis in February,according to analysis of U.S. Bureau of Labor Statistics (BLS) data released today by Associated Builders andContractors. This represents the most rapid yearly growth in construction input prices in more than five years.Only four key inputs tracked by BLS experienced monthly price declines, principally natural gas. Natural gas pricesdeclined 18% in February, but are still up by more than 66% over the past year. Crude petroleum prices are up 107%over the past year.Read the full article here.THREE WAYS TRUMP'S NEXT MOVES COULD SHAPE THE CONSTRUCTION FORECAST4Construction Dive3/9/2017The U.S. construction industry has largely been riding high since Donald Trump was elected as president. With hisdevelopment experience and promises to boost infrastructure spending and slash regulations, Trump has brought awave of optimism for a coming boom in construction business.According to AGC Chief Economist Ken Simonson, Trump's next moves could influence his own predictions for theconstruction market in the coming years, leading to what he calls a "squishy" forecast.Read the full article here.U.S. CONSTRUCTION SPENDING FALLS 1% IN JANUARY5ConstructConnect3/1/2017The seasonally adjusted annual rate of construction spending for January 2017 was estimated at 1,180 billion,according to the latest report from the U.S. Census Bureau. This is 0.1% below the December 2016 estimate which hasbeen revised up from 1,181 billion to 1,192 billion. November’s estimate was also revised up again from 1,184 billionto 1,191 billion. January’s estimate is 3.1% higher than a year ago. The estimate for January 2016 was 1,144 billion.Read the full article here.PAGE 2
BUILDING PRODUCTS & MATERIALSINDUSTRY UPDATE MARCH 2017PUBLIC MARKETS6MEDIAN REVENUE GROWTH (2012 – 2016*)5.0%Building Products8.1%MEDIAN EBITDA MARGIN (2012 – 2016*)MEDIAN EBITDA MARGIN (2016* – 2017E)5.6%16.6%MEDIAN CAPEX / 2016* REVENUE7.7%Construction Materials21.0%MEDIAN TEV / 2016* EBITDA0.7%Construction MaterialsHISTORICAL STOCK PRICES(MARCH 23, 2012 – MARCH 23, 2017)10.1xBuilding Products3.8%Building Products14.8%Building ProductsBuilding Products DistributorsConstruction Materials10.3%Construction Materials12.1%Building Products8.8%Building Products Distributors8.8%Construction MaterialsBuilding Products Distributors5.6%Building ProductsBuilding Products DistributorsBuilding Products DistributorsMEDIAN REVENUE GROWTH (2016* – 2017E)10.5xBuilding Products Distributors7.1%Construction Materials9.3xHISTORICAL MEDIAN TEV / NTM EBITDA(MARCH 23, 2012 – MARCH 23, 2017)Building Products Index260Building Products IndexBuilding Products Distributors IndexConstruction Materials Index220S&P 500 Index13.0x12.0xBuilding Products Distributors IndexConstruction Materials IndexS&P 500 Index11.0x10.0x1809.0x8.0x1407.0x1006.0x* 2016 financials include consensus estimates for companies that have not yet announced full year earningsPAGE 3
BUILDING PRODUCTS & MATERIALSINDUSTRY UPDATE MARCH 2017PUBLIC COMPARABLES6BUILDING PRODUCTS & SERVICESAs of March 23, 2017Building Products & Services( in millions except per share data)Stock PerformanceCurrent% ofPriceLTM HighMkt. CapTEVRev.2016*EBITDAMarginTEV / EBITDA2016*2017EBroader Building Products ManufacturersCompagnie de Saint-Gobain SA 49.9896.7% 27,600 34,172 41,317 4,21810.2%8.1xLIXIL Group James Hardie Industries s USG 5xArmstrong World Industries, inental Building Products, Inc.25.7597.1%1,0181,26046113429.0%9.4x9.5x 3,017 62920.9%9.4x9.3xMedian96.7%7.3xWindows & DoorsASSA ABLOY AB 20.3190.1% 22,569 24,731 8,182 1,40817.2%17.6x15.4xJELD-WEN Holding, onite International Corp.80.1597.8%2,3672,8921,97425312.8%11.5x9.8xPly Gem Holdings, x Building Products 16.5%9.6x8.6x 1,912 22912.8%9.6x8.6x10.5xTyman PlcPGT, Inc.Median90.1%HVACDaikin Industries, Ltd. 98.5196.5% 28,783 31,320 18,388 2,75015.0%11.4xLennox International Inc.171.2899.0%7,3048,3443,64252114.3%16.0x14.1x 11,015 1,63514.6%13.7x12.3xMedian97.8%Kitchen & BathMasco Corporation 34.2291.5% 10,865 13,231 7,357 1,21116.5%10.9x10.1xFortune Brands Home & Security, erican Woodmark .9xCaesarstone Ltd.33.2076.3%1,1431,08153913024.2%8.3x8.8x 3,010 45316.0%10.5x9.5xMedian92.4%Building EnvelopeKingspan Group Plc 32.2197.5% 5,651 6,315 3,304 42913.0%14.7x13.4xApogee Enterprises, Inc.56.9293.3%1,6251,5641,09215814.5%9.9x8.2xNCI Building Systems, Inc.16.0588.7%1,1371,5061,6851669.9%9.1x8.0x 1,685 16613.0%9.9x8.2xMedian93.3%Install / ServiceTopBuild Corp. 45.4894.1% 1,706 1,762 1,743 1398.0%12.7x10.4xInstalled Building Products, rt Systems USA, Inc.35.3589.1%1,3061,3051,6341287.8%10.2x9.1x 1,634 1288.0%12.7x10.4x13.8xMedian94.1%LightingAcuity Brands, Inc.Hubbell Incorporated 204.0172.6% 9,043 8,920 3,291 5x11.7x 3,398 57016.8%14.1x12.8xMedian83.1%FlooringMohawk Industries, Inc. 229.0398.0% 16,908 19,511 8,959 1,70619.0%11.4x10.6xTarkett ce, ng Flooring, Inc.18.3179.7%5055031,193837.0%6.1x6.3x 2,057 24112.9%9.5x8.5xMedian95.4%Pipe, Valves, & FittingsGeberit AG 437.2497.6% 15,791 16,574 2,787 .2x8.8xMueller Industries, Inc.32.7274.4%1,8921,7882,0561959.5%9.2xNORMA Group SE45.6379.9%1,4461,82095519220.1%9.5x8.7xUponor Oyj Class d Drainage Systems, rg Fischer AGReliance Worldwide Corp. Ltd.Polypipe Group PLC4.30MedianOverall MedianNA53410720.0%10.5x9.8x85.8% 1,203 19417.2%9.6x9.0x93.4% 1,890 22914.5%10.1x9.2x* 2016 financials include consensus estimates for companies that have not yet announced full year earningsPAGE 4
BUILDING PRODUCTS & MATERIALSINDUSTRY UPDATE MARCH 2017PUBLIC COMPARABLES6BUILDING PRODUCTS DISTRIBUTORSAs of March 23, 2017Building Products Distributors( in millions except per share data)Stock PerformanceCurrent% ofPriceLTM HighMkt. CapTEVRev.2016*EBITDAMarginTEV / EBITDA2016*2017EWolseley plc 6.2898.4% 15,883 17,238 18,737 1,5258.1%11.3x11.3xHD Supply Holdings, acon Roofing Supply, ders FirstSource, Inc.14.6692.5%1,6133,4476,3673816.0%9.0x7.6xBMC Stock Holdings, Inc.22.6599.3%1,5061,8803,0941926.2%9.8x8.2xGMS lieu Hardware Ltd20.2390.6%1,1711,1606347111.2%16.4x14.8x7.9xSIG .4xHardwoods Distribution Inc.**12.5181.4%267312591345.8%9.1x7.5xHuttig Building Products, Inc.7.5683.8%200240710213.0%11.4x8.9xGoodfellow Inc.6.3668.1%54124452173.8%7.3x6.9x 2,310 1446.0%10.5x8.6xFoundation Building Materials, Inc.CanWel Building Materials Group Ltd.Overall Median90.6%* 2016 financials include consensus estimates for companies that have not yet announced full year earnings** Pro forma EBITDA figures from the presentation for the Rugby Architectural Building Products acquisitionPAGE 5
BUILDING PRODUCTS & MATERIALSINDUSTRY UPDATE MARCH 2017PUBLIC COMPARABLES6CONSTRUCTION MATERIALSAs of March 23, 2017Construction Materials( in millions except per share data)Stock PerformanceCurrent% ofPriceLTM HighMkt. CapTEVRev.2016*EBITDAMarginTEV / EBITDA2016*2017EAggregates and CementLafargeHolcim Ltd. 57.7596.0% 35,073 53,311 26,615 5,62221.1%9.5x8.9xCRH HeidelbergCement lcan Materials .5xMartin Marietta Materials, Eagle Materials mit Materials, Inc.23.5288.9%2,4913,0381,48837125.0%8.2x7.2xU.S. Concrete, Inc.66.1592.7%1,0471,4481,16816013.7%9.1x7.3x 3,585 96923.0%10.1x9.2x6.1xMedian90.2%Heavy Construction MaterialsBoral Limited 4.4885.4% 5,262 3,034 3,122 46214.8%6.6xForterra, Inc.17.4876.8%1,1192,2011,61427817.2%7.9x7.7x81.1% 2,368 37016.0%7.2x6.9x88.8% 3,349 71419.9%9.3x8.3xMedianOverall Median* 2016 financials include consensus estimates for companies that have not yet announced full year earningsPAGE 6
BUILDING PRODUCTS & MATERIALSINDUSTRY UPDATE MARCH 2017RELEVANT inswanger GlassBuilding Products &Serv ices3/13/2017U.S. MarbleBuilding ProductsDistribution3/9/2017Tealstone Construction3/6/2017Business DescriptionAcquirerFull-serv ice designer, retailer, and installer of architectural glass andaluminum products within the construction, residential, and automotiv emarkets.Nationwide supplier of custom bathroom surfaces.Wingate PartnersConstruction MaterialsMarket leader in commercial and residential concrete construction inthe Dallas-Fort Worth area.Sterling ConstructionCompanyMKM Building SuppliesBuilding ProductsDistributionDistributor of building, timber and plumbing supplies, and stock a widerange of products.Bain Capital2/28/2017Greco Aluminum RailingsBuilding Products &Serv icesManufacturer of building railing and safety systems.CSW I ndustrials2/27/2017Surface PreparationTechnologiesBuilding Products &Serv icesProv ider of rumble strips and related roadway safety serv ices.Branford Castle Partners2/23/2017BCH HoldingsBuilding Products &Serv icesMechanical contractor.Comfort Systems2/22/2017Atlas Lighting ProductsBuilding Products &Serv icesManufacturer of high-quality LED lighting products sold into theelectrical distribution market.LSI I ndustries2/22/2017PV Sulliv an SupplyBuilding ProductsDistributionPlumbing and heating supplier serv ing Boston and EasternMassachusetts.Ferguson2/17/2017Building ProductsDistributionProv ider of residential and commercial window cov erings as well as anarray of products and serv ices for interior design customers.Springs Window Fashions,LLC2/15/2016Mariak I ndustries &Patrician WindowCov eringsI nterior LogicBuilding Products &Serv icesProv ider of turn-key design center serv ices and interior finish solutions to Platinum Equity, LLCresidential homebuilders.2/15/2017Gaco WesternBuilding Products &Serv icesManufacturer of coatings for waterproofing and insulation.Firestone Building ProductsCompany, LLC2/14/2017Midwest WholesaleHardwareBuilding ProductsDistributionHigh Road Capital Partners2/9/2017Bentley MillsBuilding Products &Serv icesLeading v alue-added wholesale distributor of commercial andinstitutional door hardware, electronic access control and securityproducts.Global manufacturer of modular carpet tile, broadloom, and area rugs.2/8/2017Stone Forest MaterialsBuilding ProductsDistributionDistributor of hardscape and related products to landscapeprofessionals.SiteOne Landscape Supply2/7/2017Futura I ndustriesBuilding Products &Serv icesDesigns and manufactures a wide range of extruded aluminumproducts including branded flooring trims and TSLOTS.The William L BonnellCompany2/6/2017Ev ergreen LumberBuilding ProductsDistributionLumber distributor serv ing Washington state.Homewood Holdings2/2/2017Baker BrothersBuilding Products &Serv icesMarket-leading prov ider of residential plumbing and HVAC repair andinstallation serv ices.Wrench Group2/1/2017Ridout CompaniesBuilding ProductsDistributionThe largest priv ately owned building products and materials dealer inArkansas.US LBM Holdings, LLC2/1/2017Original Cast LightingBuilding Products &Serv icesSpecializes in architectural lighting solutions for commercial and highend residential buildings in the United States.LegrandClio HoldingsLone Star FundsPAGE 7
BUILDING PRODUCTS & MATERIALSINDUSTRY UPDATE MARCH 2017RELEVANT TRANSACTIONS7AnnouncedDateTargetVerticalBusiness DescriptionAcquirer1/31/2017Arbo HoldingsBuilding Products &Serv ices1/31/2017Set-RiteBuilding Products &Serv icesManufactures a range of sealants, coatings and other buildingenv elope products to the UK and European construction markets forwaterproofing and air and v apor barrier applications.Manufactures a patented toilet flange spacer system that can be usedfor both retrofit applications and new construction.Carlisle Cos. I nc1/27/2017Arrow Tru-LineBuilding Products &Serv icesManufacturer and supplier of critical hardware components for the U.S. Sun Capital Partners, I nc.sectional ov erhead door market.1/25/2017Air King Fastening SystemsBuilding Products &Serv icesOffers a range nailers and industrial staplers, as well as screws and nailsin all crowns and lengths.SouthernCarlson1/21/2017Aspen Valley LandscapeSupplyBuilding ProductsDistributionDistributor of hardscapes and landscape supplies to the professionalmarket.SiteOne Landscape Supply1/19/2017US FloorsBuilding Products &Serv icesDalton, Georgia-based hardwood floor manufacturer.The Shaw Group1/18/2017Midwest FireproofingBuilding Products &Serv icesHeav y commercial fireproofing and insulation company with locationsin Chicago and I ndianapolis.TopBuild1/12/2017AWP Windows & DoorsBuilding Products &Serv icesThe merger will create the largest window and door manufacturer inFlorida.TM Windows1/10/2017United SubcontractorsBuilding Products &Serv icesProv ides insulation, specialty, and shell construction serv ices forresidential and commercial projects.Trilantic North America1/6/2017Ev erist Materials &Razorback ConcreteConstruction MaterialsOwns ready-mix concrete and asphalt plants in proximity to Summit’sexisting portfolio.Summit Materials1/4/2017Binford SupplyBuilding ProductsDistributionU.S. Fence Solutions1/4/2017Tradesmen I nternationalBuilding Products &Serv icesOne of the largest residential & commercial fencing distributors in Texas,primarily serv ing residential and commercial fencing contractorsthroughout TX and OK.Prov ider of outsourced skilled craftsmen to non-residential constructionand industrial contractors.1/2/2017Stetson Building ProductsConstruction Materials12/26/2016Floors, I nc. & MalibuAcceptance CorporationBuilding ProductsDistribution12/21/2016Soft-Lite WindowsBuilding Products &Serv icesManufacturer of v inyl replacement windows.Harv ey Building Products12/21/2016ForzaStoneConstruction MaterialsManufacturer of thin natural stone panels for commercial andresidential applications.Home Brands Group12/20/2016East Hav en LandscapeProductsBuilding ProductsDistributionDistributor of nursery, hardscapes and landscape supplies.SiteOne Landscape Supply,I nc.12/16/2016BJ SupplyBuilding ProductsDistributionDistributor of roofing and related building products.Beacon Roofing Supply,I nc.12/16/2016O&S DoorsBuilding Products &Serv icesManufacturer of made-to-measure kitchen doors.Sun Capital Partners, I nc.12/15/2016Tectum, I nc.Building Products &Serv icesManufacturer of acoustical ceiling, wall and structural solutions forcommercial building applications.Armstrong World I ndustriesOateyBlackstoneDistributor of ov er 70,000 SKUs of construction materials, accessories and Construction Supplytools, primarily for professional concrete and masonry contractors in theUnited States and Canada, v ia 48 branches.Full serv ice designer, installer and retailer of flooring products to homeDunes Point Capitalbuilders and homeowners.PAGE 8
BUILDING PRODUCTS & MATERIALSINDUSTRY UPDATE MARCH 2017RELEVANT TRANSACTIONS7AnnouncedDateTarget12/15/2016Rmax OperatingBuilding Products &Serv icesMarket leader in the production of polyiso insulation products forcomplete building env elope solutions (roofing and wall systems).Sika12/14/2016Sotawall, I nc.Building Products &Serv icesDesigner and fabricator of curtainwall systems for commercialconstruction projects.Apogee Enterprises12/12/2016Ray L Hellwig Plumbing &HeatingBuilding Products &Serv icesDesigner and installer of plumbing systems.Total Facility Solutions12/7/2016SGI , I nc. (door and drywall Building Products &div isions)Serv icesI nterior Products Supply Drywall Div ision and I nterior Products SupplyDoor Div ision of SGI , I nc.Clio12/7/2016RosboroBuilding Products &Serv icesManufacturer of forest products.GMS I nc.12/6/2016Top MasterBuilding Products &Serv icesLeading regional countertop manufacturer.Wynnchurch Capital, LLC12/6/2016ConTech LightingBuilding Products &Serv icesManufacturer of high-performance and sustainable lighting solutionsand fixtures.Lev iton12/5/2016Bassi Construction Ltd.Building Products &Serv icesProv ider of construction serv ices.Mosaic CapitalCorporation12/5/2016ES WindowsBuilding ProductsDistributionUS-based distributor of architectural glass, windows, and aluminumproducts.Tecnoglass S.A.12/2/2016XellaConstruction MaterialsWorld's largest manufacturer of aerated concrete blocks, calciumsilicate units, and high-performance boards.Lone Star Funds12/2/2016Drossbach I nc.Building Products &Serv icesUS-based manufacturer of corrugated flexible tubing.Delfingen I ndustry, S.A.11/28/2016Construction MaterialsMexico-based supplier of reinforced concrete pipe, concrete box andculv ert.The Quikrete Companies,I nc.11/21/2016Cemex S.A. (ConcretePipe ManufacturingBusiness)Guardian I ndustries Corp.Building Products &Serv icesManufacturer of float glass and fabricated glass products.KGI C Merger Corp. / KochI ndustries11/21/2016Headwaters, I nc.Building Products &Serv icesUS-based manufacturer and distributor of building products andconstruction materials.Boral Ltd.11/18/2016I nternational ChimneyCorp.Building Products &Serv icesProv ider of chimney construction and maintenance serv ices.Beroa Corporation11/14/2016Koroseal I nterior ProductsBuilding Products &Serv icesManufacturer and distributor of decorativ e, industrial transit and officeproducts.Sangetsu Corporation11/9/2016Halex CorporationBuilding Products &Serv icesManufacturer of flooring installation products.GCP Applied Technologies11/8/2016Mesker DoorBuilding Products &Serv icesDesigner and manufacturer of hollow metal doors, frames andassemblies.Dorma Kaba Holding AG11/4/2016Giant Cement Holding,I nc.Construction MaterialsManufacturer of concrete, cement, and aggregates.Elementia S.A.11/3/2016B.R. Johnson I nc.Building ProductsDistributionDistributor and contractor specializing in windows, doors, hardware,and specialty products.Lorraine Capital; RegionalBrands, I nc.VerticalBusiness DescriptionAcquirerPAGE 9
BUILDING PRODUCTS & MATERIALSINDUSTRY UPDATE MARCH 2017REPRESENTATIVE BUILDING PRODUCTS & MATERIALS TRANSACTIONSa portfolio company ofa portfolio company ofa portfolio company ofhas been acquired byhas been acquired byhas been acquired byhas been acquired byhas been acquired bya portfolio company ofa portfolio company ofa portfolio company ofhas been acquired byhas been acquired bya portfolio company ofa subsidiary ofa portfolio company ofhas sold certain assets tohas been acquired by&has been acquired byhas been acquired byhas been acquired bya subsidiary ofhas been acquired byhas been acquired byA Private InvestorGroupa portfolio company ofa portfolio company ofa portfolio company ofa portfolio company ofhas been acquired byhas been acquired bya portfolio company ofhas been acquired byhas been acquired byhas been acquired byhas been acquired byhas been acquired bya portfolio company ofa portfolio company ofa portfolio company ofa portfolio company ofa portfolio company ofa portfolio company ofhas been acquired byhas been acquired byhas been acquired byhas been acquired byhas purchasedcertain assets ofhas completed abalance sheetrestructuring andrecapitalizationtransactionhas been acquired bya portfolio company ofa portfolio company ofhas been acquired byThe Wichita, Kansasaggregates, concrete,asphalt, and pavingassetsof LaFarge SAhave been acquired bya portfolio company ofa division ofhas been acquired bySelect Atlanta,Georgia aggregatesassets of LaFarge SAhave been acquiredbya portfolio company ofa portfolio company ofStrategicIndustries, LLChas been acquired byhas been acquired byhas been acquired byPrivate Investorsa division ofa portfolio company ofa portfolio company ofa division ofa portfolio company ofa portfolio company ofhas been acquired byhas been acquired byhas been acquired bya division ofhas been acquired bya portfolio company ofhas been acquired byhas been acquired bya portfolio company ofhas been acquired bya division ofa portfolio company ofa portfolio company ofa portfolio company ofportfolio companies ofDyad Partnershas been acquired byhas been acquired byhas been acquired byhas been acquired byhas been acquired byhas been acquired byhas been acquired byPAGE 10
BUILDING PRODUCTS & MATERIALSINDUSTRY UPDATE MARCH 2017OUR FIRMHarris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities.Our clients benefit from our deep-sector experience, integrated industry intelligence andcollaboration across the firm, and our commitment to learning what makes them unique. For moreinformation, visit our website at www.harriswilliams.com/industries.Aerospace, Defense& GovernmentServicesBuilding Products& MaterialsBusinessServicesConsumerEnergy, Power& InfrastructureHealthcare& Life ,Media & TelecomTransportation& LogisticsHARRIS WILLIAMS & CO. OFFICE LOCATIONSUNITED STATESEUROPEBostonRichmond (Headquarters)FrankfurtClevelandSan FranciscoLondonMinneapolisWashington, D.C.One International PlaceSuite 2620Boston, Massachusetts 02110Phone: 1 (617) 482-75011900 East 9th Street20th FloorCleveland, Ohio 44114Phone: 1 (216) 689-2400222 South 9th StreetSuite 3350Minneapolis, Minnesota 55402Phone: 1 (612) 359-27001001 Haxall Point9th FloorRichmond, Virginia 23219Phone: 1 (804) 648-0072575 Market Street31st FloorSan Francisco, California 94105Phone: 1 (415) 288-4260800 17th St. NW2nd FloorWashington, D.C. 20006Phone: 1 202-207-2300Bockenheimer Landstrasse 33-3560325 FrankfurtGermanyPhone: 49 069 3650638 0063 Brook StreetLondon W1K 4HS, EnglandPhone: 44 (0) 20 7518 8900NETWORK OFFICESBeijingNew DelhiHong KongShanghaiMumbaiPAGE 11
BUILDING PRODUCTS & MATERIALSINDUSTRY UPDATE MARCH 2017HARRIS WILLIAMS & CO.SOURCES1.Construction Dive2.CNBC3.Associated Builders & Contractors4.Construction OSURESHarris Williams & Co. (www.harriswilliams.com) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide.The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. providessell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services.Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co.Ltd, which is a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE,UK, registered with the Registrar of Companies for England and Wales (registration number 7078852). Harris Williams & Co. Ltd is authorized andregulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co.Ltd conduct business.THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATIONPROVIDERS. NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUEROR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, AND SHALL NOT HAVE ANY LIABILITYOR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIALINFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRDPARTIES, PLEASE CONTACT US.The information and views contained in this report were prepared by Harris Williams & Co. (“Harris Williams”). It is not a research report, as such term isdefined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or asolicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy. The information contained herein isbelieved by Harris Williams to be reliable, but Harris Williams makes no representation as to the accuracy or completeness of such information. HarrisWilliams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securitiesof companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for thosecompanies. In addition, Harris Williams and/or its affilia
Windows & Doors Quanex Building Products Corporation 19.45 88.8% 668 921 928 110 11.9% 8.3x 8.6x Tyman Plc 3.90 89.7% 681 893 557 98 17.6% 9.1x 7.8x PGT, Inc. 10.28 82.3% 503 730 459 76 16.5% 9.6x 8.6x HVAC Kitchen & Bath Building Envelope Install / Service Lighting Flooring BUILDING PRODUCTS & MATERIALS INDUSTRY UPDATE MARCH 2017 * *
