The Building Products & Construction sector experienced steady M&A activity in Q1 2025, with 708 transactions closed (LTM), reflecting a 20.6% increase from Q1 2024. Strategic buyers led 88.42% of transactions, with interest in prefabrication, engineering services, and regional infrastructure players. Financial sponsors remained active, focusing on HVAC, roofing, and automation platforms. Valuation multiples are leveling out, with TEV/EBITDA at 10.02x and TEV/Revenue at 1.46x, down from 13.29x and 1.70x a year ago. These trends reflect a pivot toward operational resilience, essential services, and supply chain proximity.
Valuation multiples compressed YoY as buyers adjusted to tighter monetary conditions and inflationary pressures. Median TEV/EBITDA declined to 10.02x (from 13.29x), while TEV/Revenue held at 1.46x, signaling a flight to quality. Strategic acquirers prioritized regional leaders with scalable models, while private equity focused on consolidating fragmented verticals through bolt-on acquisitions.1 3
Strategic Acquirers: Strategic buyers drove 626 of the 708 tracked deals (87.2%) (3.8% of those were PE Backed strategics), favoring targets in electrical contracting, prefab infrastructure, and distribution. Large-cap acquirers such as Eaton and EMCOR pursued scaled targets with synergistic capabilities.8
Financial Buyers: Financial sponsors accounted for 82 transactions (12.8%) concentrating on niche verticals like HVAC, roofing, and consulting engineering. PE-backed buyers like Rotunda Capital and PAX Services deployed capital in support of platform expansion strategies.8
Building Products & Construction M&A rose 21% YoY, outperforming other cyclical sectors amid easing interest rate pressure and strong demand for essential infrastructure. Despite a 24% decline in EBITDA multiples from Q1 2024, activity was buoyed by strategic consolidation and private capital availability. Macro headwinds remain, but resilient sub-sectors like prefab and engineering services are attracting premium valuations.1 2 7
Top U.S. States: Florida (80 deals), Texas (67), and California (51) led deal volume, supported by moderately improving housing demand, infrastructure spending, and demographic growth.8
Cross-Border Trends: While most buyers were U.S.-based, select cross-border interest—particularly from Canadian and European investors—highlighted the global appeal of American infrastructure and prefab capabilities.2 7
| Target | Buyer | Value ($mm) |
| Fibrebond Corporation | Eaton Corporation plc | $1,400.00 |
| Miller Electric Company, Inc. | EMCOR Group, Inc. | $865.00 |
| David Evans & Associates, Inc. | AtkinsRéalis Group Inc. | $300.00 |
| Overland Corporation | Construction Partners, Inc. | $121.10 |
| Lane Supply, Inc. | Gibraltar Industries, Inc. | $120.00 |
| Target | Buyer | Value ($mm) |
| Mobile Asphalt Company | Construction Partners, Inc. | $55.80 |
| M.L.C. Plumbing LLC | Kingsway Financial Services Inc. | $6.25 |
| Energy Studio, Inc. | Catalyst Partners LLC | n/a |
| Holy Hound Taproom | Royal Square Development | n/a |
| Target | Buyer | Value ($mm) |
| Hi-Tech Roofing & Sheetmetal | PAX Services Group | n/a |
| Scalar Consulting Group Inc. | Gannett Fleming, Inc. | n/a |
| Chavez-Grieves Consulting Engineers | Salas O'Brien Engineers, Inc. | n/a |
| RMH Systems, Inc. | Rotunda Capital Partners, LLC | n/a |
Source S&P Capital IQ as of 4/21/2025 and PCE Proprietary Data
Key trends shaping Building Products and Construction M&A:
Opportunities: Construction spending is forecasted to grow 4.1% in 2025, with engineering expected to lead. Growth will also be supported by increased domestic manufacturing of building materials, driven by U.S. tariffs encouraging local sourcing.2 6
Risks: Labor shortages, inflation in material inputs, and regulatory delays could slow execution timelines on large projects.2 4
Predicted Activity: M&A will remain strong in HVAC, prefab infrastructure, and specialty distribution, with PE firms actively pursuing consolidation strategies.
Nicole Kiriakopoulos |
Michael Poole |
Will Stewart |
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Data Assumptions This report represents transaction activity as mergers & acquisitions, consolidations, restructurings and spin-offs. Targets are defined as U.S. Based companies with either foreign or U.S. based buyers. Transaction information provided is based on closed dates only. Glossary EBIT - Earnings Before Interest and Taxes Sources:
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