building products industry update: wood &...
TRANSCRIPT
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Building Products: Decking
Building Products
Industry Update: Wood & Decking Fall 2016
©2016 League Park Advisors
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Building Products: Decking
Wood & Decking Sector Outlook
Domestic demand for competitive decking is projected to
exceed 3.6 billion linear feet by 2020P, representing a
Compound Annual Growth Rate (“CAGR”) of 1.8% from the
3.3 billion linear feet sold throughout 2015. Though
traditional wood-based decking possesses 84% of total
decking market share, projected growth in the sector is
largely fueled by surging sales of alternatives to traditional
wood decks. Alternative decking includes wood-
composite and plastic finishes, which provide consumers
maintenance-light substitutes to traditional wood decking.
In addition to residential application, non-traditional deck
offerings have grown in popularity when installed in non-
residential tender. Despite growth in non-traditional
materials, wood deck sales are projected to reach 3.0
billion linear feet by 2020P. Projected growth in the sector
stems from positive domestic trends in new housing
completion, and relatedly, the increased marketability of
homes with pre-installed decks. Overall demand for
residential application is expected to propagate annually
at 2.3% throughout the forecast period, following positive
trends in consumer sentiment, which will support home
improvement and renovation projects.
U.S. demand for wood and other decking products, in
dollar terms, is projected to exceed $7.1 billion by 2020P.
To attain such growth, annual market expansion of 4.6%
over the $5.6 billion of 2015 recorded sales will be
necessary. Historically, demand for decking has shared
correlation to construction expenditure, and more
specifically, residential building construction. Tangentially,
residential improvement and repair activity insulates the
decking segment from baring the full effects of cyclicality
throughout the residential construction market. The
industry has maintained its resiliency through the steepest
of economic downturns over the past decade. New
decking construction projects are inherently seasonal, as
weather generally dictates consumers’ ability to purchase
and install outdoor decks. Predictably, U.S. demand peaks
between the months of April and September.
On average, traditional wood decking is the most cost
effective construction material, averaging $1.38 per linear
foot throughout 2015. Alternatives to traditional wood
decking are noticeably more expensive, as wood-plastic
composite and plastic decking cost nearly 2.5x to 3.1x as
much as their wooden counterparts, respectively. Once
installed, however, composite and plastic varieties tend to
carry vastly lower maintenance costs. The average
conservation cost of most traditional wooden decking
material nears $450 dollars annually, and requires
approximately 4.0x the upkeep of synthetic materials.
U.S. Deck Pricing
($ per linear ft.)
2005 2010 2015 2020P
Decking Average Price $1.61 $1.44 $1.73 $1.99
Selected Materials:
Wood $1.49 $1.20 $1.38 $1.52
Pressure-Treated 0.99 0.77 0.87 0.95
Redwood 1.96 1.60 1.88 2.06
Cedar 3.45 2.69 3.15 3.48
Tropical & Other 3.99 3.29 3.72 4.04
Wood-Plastic Composite 2.12 2.95 3.43 3.93
Plastic & Other Materials 3.05 3.89 4.33 4.92
Source: Freedonia
While the market for decking products is fairly fragmented,
the leading suppliers of decking include Koch Industries
(Georgia-Pacific), Trex Company, and the Weyerhaeuser
Company. Trex, the largest composite decking provider by
sales, accounted for $400 million of the $1.4 billion of
wood-plastic composite decking sold throughout 2015.
U.S. Wood & Competitive Decking Demand by Material
For the Years Ended and Ending December 31, 2005 – 2020P
(linear ft. in millions)
0
800
1,600
2,400
3,200
4,000Wood Wood / Plastic Composite
Plastic & Other Total
Source: Freedonia
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Building Products: Decking
Summary Statistics
Average Pricing:
Wood – $1.38 / linear ft.
Wood-Plastic Composite – $3.43 / linear ft.
Plastic & Other Materials – $4.33 / linear ft.
Annual Maintenance Cost:
Wood – $375
Wood-Plastic Composite – $150
Plastic & Other Materials – $100
Residential Building Demand:
2015 Market Size – 1,930 million linear ft.
2015/2010 CAGR – 1.7%
2020P/2015 CAGR – 2.3%
Non-Residential Building Demand:
2015 Market Size –278 million linear ft.
2015/2010 CAGR – 2.2%
2020P/2015 CAGR – 1.5%
Non-Building Construction Demand:
2015 Market Size – 1,042 million linear ft.
2015/2010 CAGR – 0.3%
2020P/2015 CAGR – 0.9%
Total Demand:
2015 Market Size – $5.6 billion
2015/2010 CAGR – 1.0%
2020P/2015 CAGR – 5.0%
Average Lifecycle Cost by Product Type
For the Year Ended December 31, 2015
(units in $)
$11,000
$12,000
$13,000
$14,000
$15,000
$16,000
Pine Redwood Cedar Tropical Wood /
Plastic
Composite
Plastic
Source: Freedonia
Demand by Product Type
For the Year Ended December 31, 2015
Wood
84%
Wood / Plastic
Composite
13%
Plastic &
Other
3%
2015
Source: Freedonia
Wood & Competitive Decking Demand by Application
For the Years Ended and Ending December 31, 2005 – 2020P
(linear ft. in millions)
0
800
1,600
2,400
3,200
4,000 Residential Buildings Non-Residential Buildings
Non-Building Construction Total
Source: Freedonia
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Building Products: Decking
Public Company Comparison
Publicly-traded building products companies have
generally outperformed the broader equity market (i.e.,
S&P 500 Index) trends over the past five years, and have
been steadily expanding through the first eight months of
2016. As of September 6, 2016, the median publically
tracked decking company was trading at 97.0% of its 52
week high. Public company valuations multiples remain
strong in the recovery period following the steep decline
preceding 2010. The average Earnings Before Interest, Tax,
Depreciation, and Amortization (“EBITDA”) multiple for
building products companies was 12.5x as of September 6,
2016. Publicly-traded building products tracked grew their
revenue base throughout the last twelve months at an
average rate of 4.7%.
Relative Stock Price Performance
As of September 6, 2016
Price as of 52 Week
09/06/16 High Low % of High
Lumber & Building Material Suppliers
Beacon Roofing Supply, Inc. $46.32 $48.96 $32.02 94.6%
Bluelinx Holdings Inc. 8.90 9.70 3.00 91.8%
Builders FirstSource, Inc. 13.33 16.69 6.50 79.9%
The Home Depot, Inc. 134.10 139.00 109.62 96.5%
Lowe's Companies, Inc. 76.01 83.65 62.62 90.9%
Universal Forest Products Inc. 109.78 110.97 57.11 98.9%
Median $61.17 $66.31 $44.57 93.2%
MRO / Specialty Product Distributors
W.W. Grainger, Inc. $230.41 $239.95 $176.85 96.0%
Watsco Inc. 148.45 149.99 106.58 99.0%
WESCO International Inc. 62.93 63.90 34.00 98.5%
Wolseley plc 59.26 59.86 43.15 99.0%
Median $105.69 $106.95 $74.87 98.7%
Residential Focused Building Product Manufacturers
American Woodmark Corp. $87.50 $89.89 $57.04 97.3%
Griffon Corporation 16.91 19.24 13.45 87.9%
Masco Corporation 35.31 37.38 23.10 94.5%
Mohawk Industries Inc. 214.95 214.98 148.56 100.0%
PGT, Inc. 11.84 14.05 8.69 84.3%
Quanex Building Products Corporation 19.68 21.66 15.33 90.9%
The Sherwin-Williams Company 285.13 312.48 218.27 91.2%
Simpson Manufacturing Co., Inc. 44.86 44.89 30.25 99.9%
USG Corporation 27.26 31.14 15.85 87.5%
Median $35.31 $37.38 $23.10 91.2%
Commercial Focused Building Product Manufacturers
Lennox International, Inc. $162.24 $164.02 $105.65 98.9%
Valmont Industries, Inc. 132.47 145.94 92.33 90.8%
Median $147.36 $154.98 $98.99 94.8%
Construction Materials
CEMEX, S.A.B. de C.V. $8.53 $9.09 $3.50 93.8%
CRH plc 34.24 34.74 21.76 98.6%
Eagle Materials Inc. 80.49 87.57 45.03 91.9%
Granite Construction Incorporated 48.86 51.35 28.45 95.2%
LafargeHolcim Ltd. 53.50 60.80 34.22 88.0%
Martin Marietta Materials, Inc. 180.95 206.36 108.31 87.7%
MDU Resources Group Inc. 24.02 24.67 15.58 97.4%
Monarch Cement Co. 36.75 39.25 28.50 93.6%
United States Lime & Minerals, Inc. 64.55 66.62 45.56 96.9%
U.S. Concrete, Inc. 50.52 69.66 40.42 72.5%
Vulcan Materials Company 112.96 127.20 78.83 88.8%
Median $50.52 $60.80 $34.22 93.6%
Decking
Boise Cascade Company $26.24 $33.15 $13.80 79.2%
Potlatch Corporation 39.10 39.91 24.01 98.0%
Trex Co. Inc. 61.84 64.36 31.11 96.1%
Universal Forest Products Inc. 109.78 110.97 57.11 98.9%
Weyerhaeuser Co. 32.17 33.17 22.06 97.0%
Median $39.10 $39.91 $24.01 97.0%
1-Year Historical Stock Performance
For the Period Ended September 6, 2016
60%
80%
100%
120%
140%
160%
S&P 500 Decking
Lumber & Material Suppliers MRO / Specialty Distributors
Residential Building Products Commercial Building Products
Construction Materials
5-Year Historical Stock Performance
For the Period Ended September 6, 2016
0%
100%
200%
300%
400%
500%S&P 500 Decking
Lumber & Material Suppliers MRO / Specialty Distributors
Residential Building Products Commercial Building Products
Construction Materials
Market Data Provided by S&P Capital IQ
Decking: NYSE:BCC, NasdaqGS:PCH, NYSE:TREX, NasdaqGS:UFPI,
NYSE:WY
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Building Products: Decking
Building Products Industry Analysis
Industry Financial Analysis
As of September 6, 2016
($ in millions) YoY Change
Last Twelve Months LTM Margins LTM LTM Margins Previous Year
Revenue EBIT EBITDA Gross EBIT EBITDA Revenue Gross EBIT EBITDA
Lumber & Building Material Suppliers
Beacon Roofing Supply, Inc. $3,740.5 $203.2 $285.1 24.1% 5.4% 7.6% 52.4% 4.4% nm nm
Bluelinx Holdings Inc. 1,929.3 22.8 32.7 12.0% 1.2% 1.7% (2.3%) 5.5% nm 66.3%
Builders FirstSource, Inc. 5,806.3 188.1 301.0 25.4% 3.2% 5.2% nm 10.5% nm nm
The Home Depot, Inc. 92,033.0 12,640.0 14,566.0 34.2% 13.7% 15.8% 7.8% 0.0% 15.0% 13.9%
Lowe's Companies, Inc. 61,090.0 5,979.0 7,553.0 34.7% 9.8% 12.4% 5.9% (0.1%) 16.6% 12.6%
Universal Forest Products Inc. 2,970.1 159.4 200.8 14.9% 5.4% 6.8% 5.9% 17.8% 48.5% 36.5%
Median $4,773.4 $195.6 $293.0 24.8% 5.4% 7.2% 5.9% 5.0% 16.6% 25.2%
MRO / Specialty Product Distributors
W.W. Grainger, Inc. $10,081.4 $1,283.0 $1,472.6 41.2% 12.7% 14.6% 0.5% (4.5%) (10.6%) (9.1%)
Watsco Inc. 4,146.7 332.3 352.1 24.4% 8.0% 8.5% 2.5% (0.1%) 1.4% 1.7%
WESCO International Inc. 7,473.0 353.8 409.7 19.8% 4.7% 5.5% (4.3%) (1.8%) (18.6%) (16.5%)
Wolseley plc 18,374.2 1,110.4 1,319.8 28.2% 6.0% 7.2% 2.6% 0.8% 3.4% 2.5%
Median $8,777.2 $732.1 $864.8 26.5% 7.0% 7.8% 2.6% 0.3% 2.4% 2.1%
Residential Focused Building Product Manufacturers
American Woodmark Corp. $974.0 $101.4 $115.4 21.4% 10.4% 11.8% 15.3% 9.4% 56.0% 52.2%
Griffon Corporation 1,958.6 106.1 175.8 24.0% 5.4% 9.0% (4.0%) 1.6% 8.8% 5.4%
Masco Corporation 7,275.0 1,051.0 1,182.0 32.9% 14.4% 16.2% 2.6% 7.7% 25.4% 22.0%
Mohawk Industries Inc. 8,631.0 1,201.8 1,591.1 31.6% 13.9% 18.4% 9.7% 9.5% 31.5% 27.1%
PGT, Inc. 412.9 49.2 61.0 29.7% 11.9% 14.8% 15.3% (4.1%) 2.3% 8.8%
Quanex Building Products Corporation 874.5 45.1 95.6 23.6% 5.2% 10.9% 42.4% 10.3% nm 94.4%
The Sherwin-Williams Company 11,550.4 1,748.5 1,947.4 50.2% 15.1% 16.9% 2.2% 6.4% 15.0% 13.3%
Simpson Manufacturing Co., Inc. 830.4 129.9 156.7 46.6% 15.6% 18.9% 8.0% 3.9% 30.5% 23.0%
USG Corporation 3,869.0 460.0 602.0 19.7% 11.9% 15.6% 1.7% 11.5% 37.7% 24.6%
Median $1,958.6 $129.9 $175.8 29.7% 11.9% 15.6% 8.0% 7.7% 27.9% 23.0%
Commercial Focused Building Product Manufacturers
Lennox International, Inc. $3,523.5 $406.0 $466.7 28.5% 11.5% 13.2% 4.0% 5.1% 19.9% 16.6%
Valmont Industries, Inc. 2,503.3 248.7 332.9 25.7% 9.9% 13.3% (13.1%) 4.0% (5.4%) (6.6%)
Median $3,013.4 $327.4 $399.8 27.1% 10.7% 13.3% (4.6%) 4.5% 7.3% 5.0%
Construction Materials
CEMEX, S.A.B. de C.V. $13,180.7 $1,626.7 $2,519.7 34.1% 12.3% 19.1% 13.5% 2.0% 20.0% 18.4%
CRH plc 30,267.8 1,871.7 3,073.0 31.8% 6.2% 10.2% 35.1% 7.3% 68.2% 60.8%
Eagle Materials Inc. 1,156.0 241.8 337.5 24.0% 20.9% 29.2% 6.5% 0.6% 5.4% 8.0%
Granite Construction Incorporated 2,425.6 99.0 161.5 12.9% 4.1% 6.7% 5.5% 22.7% nm 40.1%
LafargeHolcim Ltd. 29,067.1 (345.4) 2,091.6 30.7% (1.2%) 7.2% 52.5% (30.3%) nm nm
Martin Marietta Materials, Inc. 3,435.4 610.4 878.7 24.4% 17.8% 25.6% 8.0% 19.9% 38.5% 23.4%
MDU Resources Group Inc. 4,296.8 312.2 546.1 16.1% 7.3% 12.7% 5.8% 0.0% 2.9% 7.1%
Monarch Cement Co. 160.7 24.6 39.5 25.3% 15.3% 24.6% 13.2% 19.5% 77.3% 40.8%
Texas Industries Inc. 912.1 25.9 103.3 11.0% 2.8% 11.3% 0.0% 0.0% 0.0% 0.0%
United States Lime & Minerals, Inc. 134.8 21.4 37.5 34.7% 15.9% 27.8% (1.6%) 3.6% 1.8% 2.9%
U.S. Concrete, Inc. 1,079.5 77.9 127.3 20.5% 7.2% 11.8% 36.1% 3.4% 51.2% 51.8%
Vulcan Materials Company 3,607.3 680.3 961.3 27.8% 18.9% 26.6% 14.3% 26.8% 67.5% 40.7%
Median $2,930.5 $170.4 $441.8 24.8% 9.8% 15.9% 10.6% 3.5% 29.3% 23.4%
Decking
Boise Cascade Company $3,792.6 $100.5 $163.1 13.3% 2.7% 4.3% 5.0% (6.1%) (28.3%) (15.9%)
Potlatch Corporation 581.9 56.9 95.8 18.2% 9.8% 16.5% (0.8%) (23.7%) nm nm
Trex Co. Inc. 461.4 93.8 108.3 37.5% 20.3% 23.5% 8.0% 1.6% 15.1% 12.4%
Universal Forest Products Inc. 2,970.1 159.4 200.8 14.9% 5.4% 6.8% 5.9% 17.8% 48.5% 36.5%
Weyerhaeuser Co. 7,508.0 1,116.0 1,643.0 20.2% 14.9% 21.9% 18.7% (7.0%) 13.0% 11.2%
Median $2,970.1 $100.5 $163.1 18.2% 9.8% 16.5% 5.9% (6.1%) 14.0% 11.8%
Source: Capital IQ
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Building Products: Decking
Industry Valuations
As of September 6, 2016
($ in millions) Enterprise Enterprise Value / LTM
Market Cap Value* LTM EBITDA Capital Revenue EBIT EBITDA
Lumber & Building Material Suppliers
Beacon Roofing Supply, Inc. $2,768.1 $3,921.7 4.2x 43.0% 1.0x 19.3x 13.8x
Bluelinx Holdings Inc. 80.4 495.3 12.9x nm 0.3x 21.8x 15.2x
Builders FirstSource, Inc. 1,467.6 3,399.8 6.4x nm 0.6x 18.1x 11.3x
The Home Depot, Inc. 165,690.4 182,615.4 1.4x 12.6% 2.0x 14.4x 12.5x
Lowe's Companies, Inc. 66,482.9 80,246.9 2.1x 23.8% 1.3x 13.4x 10.6x
Universal Forest Products Inc. 2,229.4 2,228.8 0.4x 3.8% 0.8x 14.0x 11.1x
Median $2,498.7 $3,660.7 3.1x 18.2% 0.9x 16.3x 11.9x
MRO / Specialty Product Distributors
W.W. Grainger, Inc. $13,922.0 $15,986.2 1.5x 16.3% 1.6x 12.5x 10.9x
Watsco Inc. 4,844.9 5,353.1 0.8x 5.5% 1.3x 16.1x 15.2x
WESCO International Inc. 2,660.7 3,942.2 3.5x 54.3% 0.5x 11.1x 9.6x
Wolseley plc 14,745.8 16,479.1 2.7x 24.0% 0.9x 14.8x 12.5x
Median $9,383.4 $10,669.7 2.1x 20.2% 1.1x 13.7x 11.7x
Residential Focused Building Product Manufacturers
American Woodmark Corp. $1,426.8 $1,231.8 0.2x 1.7% 1.3x 12.2x 10.7x
Griffon Corporation 723.2 1,584.9 5.3x nm 0.8x 14.9x 9.0x
Masco Corporation 11,659.9 13,739.9 2.5x 25.7% 1.9x 13.1x 11.6x
Mohawk Industries Inc. 15,939.3 18,814.2 1.9x 18.5% 2.2x 15.7x 11.8x
PGT, Inc. 579.5 801.0 4.1x 43.3% 1.9x 16.3x 13.1x
Quanex Building Products Corporation 673.6 953.9 3.2x 44.8% 1.1x 21.1x 10.0x
The Sherwin-Williams Company 26,295.2 28,037.8 1.1x 8.2% 2.4x 16.0x 14.4x
Simpson Manufacturing Co., Inc. 2,170.7 1,924.4 0.0x 0.0% 2.3x 14.8x 12.3x
USG Corporation 3,978.7 5,330.7 3.4x 51.2% 1.4x 11.6x 8.9x
Median $2,170.7 $1,924.4 2.5x 22.1% 1.9x 14.9x 11.6x
Commercial Focused Building Product Manufacturers
Lennox International, Inc. $7,053.0 $8,073.9 2.3x 15.2% 2.3x 19.9x 17.3x
Valmont Industries, Inc. 2,998.8 3,453.7 2.3x 25.4% 1.4x 13.9x 10.4x
Median $5,025.9 $5,763.8 2.3x 20.3% 1.8x 16.9x 13.8x
Construction Materials
CEMEX, S.A.B. de C.V. $11,904.5 $28,172.5 6.5x nm 2.1x 17.3x 11.2x
CRH plc 28,422.0 37,125.7 3.1x 33.6% 1.2x 19.8x 12.1x
Eagle Materials Inc. 3,882.8 4,372.4 1.5x 12.8% 3.8x 18.1x 13.0x
Granite Construction Incorporated 1,934.9 1,782.8 1.6x 13.4% 0.7x 18.0x 11.0x
LafargeHolcim Ltd. 32,468.9 55,558.2 10.8x 69.8% 1.9x nm nm
Martin Marietta Materials, Inc. 11,479.0 13,239.8 2.0x 15.6% 3.9x 21.7x 15.1x
MDU Resources Group Inc. 4,691.2 6,608.4 3.6x 42.4% 1.5x 21.2x 12.1x
Monarch Cement Co. 141.9 145.1 0.2x 4.4% 0.9x 5.9x 3.7x
United States Lime & Minerals, Inc. 359.0 296.1 0.0x 0.0% 2.2x 13.9x 7.9x
U.S. Concrete, Inc. 765.5 1,106.0 3.5x 57.7% 1.0x 14.2x 8.7x
Vulcan Materials Company 15,031.8 16,922.5 2.1x 13.2% 4.7x 24.9x 17.6x
Median $4,691.2 $6,608.4 2.1x 14.4% 1.9x 18.0x 11.6x
Decking
Boise Cascade Company $1,016.8 $1,386.9 2.9x 45.8% 0.4x 13.8x 8.5x
Potlatch Corporation 1,584.3 2,145.2 6.1x 37.0% 3.7x nm nm
Trex Co. Inc. 1,911.1 1,951.5 0.4x 2.3% 4.2x 20.8x 18.0x
Universal Forest Products Inc. 2,229.4 2,228.8 0.4x 3.8% 0.8x 14.0x 11.1x
Weyerhaeuser Co. 24,086.6 32,970.6 5.7x 38.8% 4.4x 29.5x 20.1x
Median $1,911.1 $2,145.2 2.9x 37.0% 3.7x 17.4x 14.6x
Total Debt /
Source: Capital IQ
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Building Products: Decking
LTM Growth and Profitability Matrix
For the Period Ended September 6, 2016
5.0%
8.0%
11.0%
14.0%
17.0%
20.0%
(5.0%) 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%
LT
M E
BIT
DA
Marg
in
3 - Year Revenue CAGR
= Total Enterprise Value for Decking Companies
22.6x LTM EBITDA
11.1x LTM EBITDA
8.5x LTM EBITDA
20.1x LTM EBITDA
Lumber & Building
Materials Median
11.9x LTM EBITDA
MRO / Specialty
Distributor Median
11.7x LTM EBITDA
Residential Building
Products Median
11.6x LTM EBITDA
Commercial Building
Products Median
13.8x LTM EBITDA
Construction
Materials Median
11.6x LTM EBITDA
18.0x LTM EBITDA
5-Year TEV / EBITDA
For the Period Ended September 6, 2016
5.0x
8.0x
11.0x
14.0x
17.0x
20.0x
Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16
S&P 500 Decking Lumber & Material Suppliers
MRO / Specialty Distributors Residential Building Products Commercial Building Products
Construction Materials
Source: Capital IQ
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Building Products: Decking
Building Products M&A Trends
Although residential construction has displayed regular
cyclicality, strong new housing construction trends,
coupled with increased activity in residential repair and
improvement, are expected to drive activity in the
segment. According to the Construction Backlog Indicator
(“CBI”), the national average construction backlog currently
sits at 8.4 months, increasing most rapidly in the West and
Northeast regions. Building costs rose 3.5% year-over-
year throughout 2015, and continue trending upwards
thus far in 2016. While at a lower rate than experienced
throughout 2014 and 2015, retail vacancies continue to
decline by -0.1% per quarter, and settled near 5.5%
nationally in Q2 2016. Overall sentiment remains high in
the sector, as M&A activity continues to flourish in 2016.
M&A Transaction History
January 1, 2007 – September 6, 2016
Date Target Acquirer
Jun-16Idaho Western
Idaho Western distrubutes and sells building products, including sheathing and decking products.Universal Forest Products
Jun-16Robbbins Treating & Manufacturing
Robbins Treating and Manufacturing, Certain Assets comprises five wood treating operations.Universal Forest Products
Apr-16Central Idaho Timberlands
172,000 Acres of Central Idaho Timberlands were acquired by SPP Land LLC. The lumber is expected to be used to procure decking and other finished wood products.SPP Land
Apr-16Icopal
Icopal develops and produces roofing and waterproofing products.Standard Industries
Jan-16Clubhouse Deck & Rail
Clubhouse Deck and Rail Business of Deceuninck North America, LLC was acquired by The Tapco Group.The Tapco Group
Mar-15Martin Fireproofing Corporation
Martin Fireproofing Corporation manufactures, sells, and installs specialty roof deck solutions.Innovative Metals Company
Feb-15Rapid Wood Manufacturing
Rapid Wood Manufacturing engages in the manufacture of finished wood products for a variety of end market applications.Universal Forest Products
Mar-14Upshur Forest Products
Upshur Forest Products, LLC owns sawmill facilities.Universal Forest Products
Nov-13SE Panel & Lumber Supply
SE Panel and Lumber Supply, LLC provides sales, marketing, and distribution services to industrial markets specializing in the concrete forming and scaffolding segments.Universal Forest Products
Sep-13Norcros
Norcros plc, together with its subsidiaries, develops, manufactures, markets, and exports home consumer products in the United Kingdom and South Africa.Lifestyle Investments
Dec-12Kleer Lumber
Kleer Lumber, LLC manufactures free foam cellular poly vinyl chloride ("PVC") trim boards for dealers and contractors in the United States.The Tapco Group
Dec-12TimberTech
TimberTech Limited engages in the research, development, manufacture, and marketing of composite wood decking, railing and lighting.AZEK Building Products
Dec-12VAST Enterprises
VAST Enterprises, LLC manufactures composite pavers.AZEK Building Products
Dec-11Western Forest Products
Western Forest Products Inc. operates as an integrated softwood forest products company.Brookfield Asset Management
Aug-09Correct Building Products
Correct Building Products, LLC designs and manufactures polypropylene based composite decking products for outdoor living.Standard Industries
Dec-08Sensibuilt Building Solutions
Sensibuilt Building Solutions LLC was acquired by Fiber Composites, LLC. Sensibuilt Building Solutions LLC provides building materials to the homeowners.Fiber Composites, LLC
Feb-08Composatron Composite Technology
Composatron Composite Technology manufactures and distributes wood composite products.AZEK Building Products
Oct-07Louisiana-Pacific - Composite Decking Plant
Fiber Composites, LLC acquired composite decking plant in Meridian, Idaho of Louisiana-Pacific Corp. Fiber Composites, LLC
Jan-07Procell Decking
Procell Decking, Inc. engages in the development and manufacture of decking products.CPG International
Source: CapitalIQ
8
Building Products: Decking
RECENT TRANSACTIONS
BUILDING PRODUCTS
INDUSTRIAL & CONSUMER
BUSINESS SERVICES, HEALTHCARE & IT
9
Building Products: Decking
LEAGUE PARK OVERVIEW
League Park Advisors, LLC (“League Park”) is a boutique investment banking firm committed to advising clients on strategies to try and
maximize shareholder value. League Park counsels its clients on monetizing business value through sales and recapitalizations,
enhancing corporate value through strategic acquisitions, and raising capital to fuel growth.
League Park’s senior bankers have decades of investment banking and M&A experience, completing over 300 transactions in the past
25 years.* The League Park team pledges to provide sophisticated, specialized attention at every stage of the transaction process with
a unique blend of financial, strategic, and operational expertise.
Advisory Capabilities:
Sell-Side and Buy-Side Mergers and Acquisitions
Recapitalizations and Refinancings
Capital Raising
Valuations and Fairness Opinions
Strategic Alternatives
Other Financial, Strategic, and Operational Guidance
Industry Expertise:
Business Services
Consumer and Retail
Healthcare
Technology
Industrial
Automotive
Building Products and Construction
Distribution
Industrial and Specialty Gas
Industrial Services
Metals
Paper, Print, and Packaging
Specialty Chemicals
Specialty Glass
*Transactions represent personal experience of certain members of League Park Advisors, LLC and may have been completed while employed at other firms.
For more information, please contact:
Building Products and Construction:
Wayne A. Twardokus
(216) 455-9989
To learn more about League Park, please contact:
Sean Dorsey
Founder and Managing Director
(216) 455-9990
1100 Superior Avenue East, Suite 1650
Cleveland, Ohio 44114
(216) 455-9985
or visit us at: www.leaguepark.com
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Building Products: Decking
SOURCES AND D ISCLOSURE Sources Referenced
Capital IQ
Company Investor Presentations
Equity Research
FMI Corporation
JLL
McGraw-Hill Construction
Pitchbook
SEC Filings and Forms (EDGAR)
Standard & Poor’s
The Freedonia Group
U.S. Department of Commerce
U.S. Department of Transportation
The Freedonia Group
Research materials for the preceding report were provided by The Freedonia Group. Founded in 1985, the Freedonia Group is a
leading international business research company that publishes more than 100 industry research studies annually. These reports
include product and market forecasts, industry trends, threats and opportunities, competitive strategies, market share determinations
and company profiles. More than 90% of the industrial companies in the Fortune 500 use The Freedonia Group research to help with
their strategic planning.
www.freedoniagroup.com
Disclosure
The preceding report has been prepared by League Park. This report is an overview and analysis of the industry and consolidation trends and is
not intended to provide investment recommendations on any specific industry or company. It is not a research report, as such term is defined
by applicable law and regulations. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial
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decision. Any projections, estimates, or other forward looking statements contained in this report involve numerous and significant subjective
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results to differ materially.
These materials are based solely on information contained in publicly available documents and certain other information provided to League
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