· Global transactions in the Building Products & Services sector hit nearly 1,500 in 2024, up by 13%
· The UK saw M&A activity rise by 30% last year, with a 15% rise in the US
· In the last five years, more than 6,000 transactions were completed worldwide.
The Building Products & Services sector saw a record number of M&A transactions in 2024, with a rise in deals led by strong increases in the UK and US.
According to BDO’s annual Building Products & Services report, in association with the Construction Products Association (CPA), nearly 1,500 transactions were completed worldwide in 2024. The UK saw a 30% increase in deal volumes, with private equity increasing its share. In the US, deals were up by 15%.
The latest figures show the sector has continued to defy significant challenges in recent years, with more than 6,000 transactions completed worldwide in the last five years. Deal volumes in 2024 were up 13%. Of these, nearly a quarter (23%) were cross-border and nearly a fifth (19%) were buyouts.
US acquirers were responsible for some of the standout deals in the year, including Home Depot’s US$18.25bn acquisition of building supply distributor SRS Distribution, Owens Corning’s US$3.9bn purchase of Masonite International, and Blackstone’s US$3.5bn buy-out of Emerson’s 40% stake in climate control system manufacturer Copeland. Closer to home, Quanex Building Products acquired UK building products supplier Tyman plc for US£1.1bn.
Saint Gobain continued to be a big-ticket acquirer, buying Australian building materials supplier CSR for £2.2bn in Australia, construction chemicals companies OVNIER in Mexico for £634m and Fosroc in United Arab Emirates for £812m. CRH was another player to make moves in the Australian market, buying cement and lime producer Adbri for AU$2.2bn followed by precast concrete products manufacturer Civilmart for AU$500m.
In the UK, it was housebuilders that saw some of the bigger deals, including the Redrow-Barratt merger, the acquisition of Cala Group by Sixth Street Partners and Patron Capital, and Miller Homes’ acquisition of St Modwen Properties.
John Stephan, partner and Head of Global M&A at BDO LLP, commented: “Uncertainty around global trade is arguably higher than it has been for decades, adding to recent stresses arising from the cost-of-living crisis, supply chain shortages, COVID and Brexit. However, you wouldn’t know it from looking at the Building Products & Services sector.
“The UK market saw a record number of transactions in 2024, and many players are poised for growth in 2025 thanks to favourable tailwinds. Last year’s general election ushered in a government that is keen to show it means business across a range of areas relevant to the sector, from housebuilding to energy infrastructure. As well as this, Building Products & Services companies look set to benefit from activities that cannot be put off for much longer, such as UK water and wastewater infrastructure, where there has been a severe lack of investment.”
The report highlights several key market themes that have influenced M&A activity in the sector over the last 12 months. This includes digitisation and sustainability, as well as regulatory reform, which is helping to drive deal activity.
Daniel Guttmann, partner and Head of Industrials & Services Strategy & CDD at BDO, commented: “Alongside net zero-driven growth areas, such as solar panel and heat pump installation, Building Products & Services providers are increasingly focused on the circular economy, investing in recycling and reusing materials.”
He added: “While past experience has taught us not to take things for granted, the industry track record and vast opportunities being harnessed across so many segments of the market lead us to be cautiously optimistic, particularly as UK output is expected to grow in 2025 and 2026 – tariffs permitting.”