KROLL-美国和加拿大建筑产品和材料-2024年秋季_18页_845kb

U.S. and Canada Building Products & Materials Industry Summary (Fall 2024)

Core Content Overview

The U.S. and Canadian building products and construction materials industry in Fall 2024 reflects a mix of challenges and opportunities. Key trends in both markets are influenced by mortgage rates, housing demand, and economic conditions, while M&A activity remains active, particularly in the U.S. with a significant portion driven by strategies or sponsor-backed deals.

U.S. Market Highlights

M&A Activity

• M&A Transactions Closed (TTM June 2024): 143, up from 124 in 2023.
• Percentage of M&A by Strategies/Sponsor-backed: 91%.
• Mortgage Rates:
  • Average 30-year fixed mortgage rate in August 2024: 6.54%, down from the peak of 7.66% in October 2023.
  • Despite the decline, the housing market remains sluggish due to anticipated rate cuts and high home prices.
• Nonresidential Construction Spending (May 2024): $1.2 trillion, up 12% YoY, driven by government subsidies like the Infrastructure Investment and Jobs Act and Inflation Reduction Act.
• Housing Starts:
  • Single-family: Increased by 5.4% YoY in June 2024.
  • Multi-family: Declined by 23.6% YoY, reflecting continued challenges with borrowing costs and material prices.
• Home Sales and Inventory:
  • New home sales volume expected to increase by 1.5% in December 2024 compared to December 2023.
  • Existing home sales volume is expected to increase by 3.6% YoY, with median prices rising 3.6% in 2024 and 84% over the past decade.
• Home Prices:
  • S&P CoreLogic Case-Shiller U.S. National Home Price Index rose 5.9% YoY in May 2024.
  • The 10-City Index increased 7.6%, while the 20-City Index increased 6.8%.
  • Prices have risen for six consecutive quarters due to low inventory and reluctance of existing homeowners to sell at current rates.
• Home Remodeling Activity:
  • Spending for improvements and repairs decreased 6.3% in Q2 2024, with a continued slowdown expected through 2025.
  • High interest rates and housing prices have dampened homeowner enthusiasm for renovations, though demand for new homes may drive future activity.

Canadian Market Highlights

Housing Starts

• June 2024 Housing Starts: Decreased 15.7% YoY and 9.4% MoM.
• Multi-unit Housing Starts: Declined 18.8% YoY, leading to a general slowdown in the market.
• Housing Starts Trends: Slightly higher in the second quarter compared to the first.

Home Prices

• MLS Home Price Index (June 2024): Declined 3.5% YoY, with no categories experiencing price increases.
• One-story homes: Declined 1.2% YoY, showing the least impact.
• Two-story homes: Most affected by price declines.
• Regional Impact: Toronto and Vancouver have seen the greatest price drops.

Kroll Building Products Experience

Notable Transactions

• Fleetwood Aluminum Products: Sold to Masonite, with Kroll serving as financial advisor.
  • A family-owned business since 1961, specializing in luxury doors and windows.
  • Headquartered in Corona, CA, with a 200,000 sq ft facility and 350 employees.
  • Fleetwood CEO Gary Gumbleton praised Kroll's guidance and dedication in the transaction.

Other Transactions

• Phillips Manufacturing Co. acquired by USG.
• Profab acquired by Kairos Capital Management.
• Sunrise Electric Supply, Inc. acquired by Sonepar.
• John Sterling Corporation acquired by KVA Knape & Vogt.
• MAX acquired by Jika®.
• Northland acquired by National Concrete Accessories.
• Truth Hardware acquired by Tyman PLC.
• K.C. Company, Inc. acquired by Pella®.
• Krestmark acquired by HW Headwaters.
• WR Windsor acquired by DC Desco Capital.
• LLC Managing Environments acquired by Senneca.
• Honsador Holding LLC acquired by Grey Mountain Partners.
• King acquired by Jika®.
• Permaquin acquired by Tremco.
• Steel-Craft Door Products Ltd. completed a senior debt recapitalization with BMO.

Key Contacts

• Steve Burt – Global Head of M&A, Chicago, +1 312-697-4620, steve.burt@kroll.com
• Devin Kennealy – Director, Canadian M&A Advisory, Toronto, +1 416-361-6749, devin.kennealy@kroll.com
• David Althoff – Global Head of Diversified Industrials M&A, Chicago, +1 312-697-4625, david.althoff@kroll.com
• Stephanie Lau – Director, Canadian M&A Advisory, Toronto, +1 416-361-6761, stephanie.lau@kroll.com
• Jeffrey McNamara – Managing Director, Diversified Industrials M&A, Chicago, +1 312-697-4638, jeffrey.mcnamara@kroll.com
• Isabel Aglikin – Vice President, Diversified Industrials M&A, Chicago, +1 312-697-4531, isabel.aglikin@kroll.com
• Dr. Howard E. Johnson – Managing Director, Canadian M&A Advisory, Toronto, +1 416-597-4500, howard.johnson@kroll.com

About Kroll

• Kroll is a leading independent provider of risk and financial advisory solutions.
• Services include M&A advisory, capital raising, and secondary market advisory in the U.S. (Kroll Securities, LLC), U.K. (Kroll Securities Ltd.), and India (Kroll Advisory Private Limited).
• The report is for informational purposes only and does not constitute professional advice or investment solicitation.