Blog Author

Nicole Kiriakopoulos

E: nicolek@pcecompanies.com

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Industry Trends

November Pending Home Sales Show Strength

Pending home sales in the U.S. rose 2.2% in November 2024, marking the fourth consecutive month of growth. This increase indicates a resilient housing market, with rising consumer confidence and active buyer engagement. Despite higher mortgage rates, the market is holding steady, with gains across most regions. The South led the pack at 5.2% growth, while all other areas grew moderately, except for the Northeast, where sales fell by 1.3%. This trend suggests that the housing market could continue strengthening into 2025, driving demand for new construction.1

Perry Homes Expands Florida Presence with MasterCraft Acquisition

Perry Homes has expanded its footprint in Florida by acquiring MasterCraft Builder Group. This strategic move allows Perry Homes to tap into MasterCraft’s established brand and market presence, positioning them to meet growing demand in the state. The deal reflects the ongoing trend of consolidation in the home building industry as companies seek to strengthen their regional positions.2

Soaring Lumber Prices Drive Building Material Costs

Building material prices rose in November, primarily driven by a 13.7% increase in lumber prices that have been impacted by supply constraints and increased demand. Despite declining energy costs, other materials like concrete and millwork also saw price hikes, reflecting the complex factors influencing the construction industry. This price increase underscores ongoing inflationary pressures on construction, making it crucial for industry professionals to adapt to higher material costs and plan projects accordingly.3

Rising Mortgage Rates Despite Federal Reserve Interest Rate Cuts

Despite recent interest rate cuts by the Federal Reserve, mortgage rates have risen, presenting a paradox in the housing market. The higher mortgage rates, coupled with persistent inflation and economic uncertainty, continue to put pressure on homebuyers. This disconnect highlights the complex relationship between federal policy and the housing market.4

Largest Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • POWER Engineers, Incorporated
  • WSP Global Inc.
  • $1,780.00
  • Construction Materials Business of Stavola Holding Corporation
  • Arcosa MS9, LLC
  • $1,200.00
  • Asphalt Inc., LLC
  • Construction Partners, Inc.
  • $878.30
  • BCC Engineering, LLC
  • Parsons Corporation
  • $230.00
  • PF WaterWorks, LP
  • CSW Industrials, Inc.
  • $40.00
  • United Engineers & Constructors, Inc.
  • Aecon Group Inc.
  • $33.00

Other Financial Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • SFS Security Fire Systems, Inc.
  • Blackford Capital Associates II, Inc.
  • n/a
  • T BAILEY, LLC
  • Saothair Capital Partners, LLC
  • n/a
  • Landmark Structures I, L.P.
  • Cerberus Capital Management, L.P.
  • n/a
  • BNP Associates, Inc.
  • Godspeed Capital Management LP
  • n/a
  • Velocity Rail Solutions, Inc.
  • Wind Point Advisors, LLC
  • n/a
  • Flow Service Partners Tennessee Op-Co LLC
  • Quad-C Management, Inc.
  • n/a
  • Pioneer Window Manufacturing, Inc.
  • Saothair Capital Partners, LLC
  • n/a
  • The State Group, Inc.
  • Apollo Global Management, Inc.
  • n/a
  • Progressive Pipeline Management
  • Platform Partners LLC
  • n/a
  • Mason Blau & Associates, Inc.
  • Godspeed Capital Management LP
  • n/a

Other Strategic Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Substantially all of the assets of Tribute Contracting & Consultants LLC
  • Energy Services of America Corporation
  • $24.00
  • Consolidated Mechanical, Inc.
  • Limbach Holdings, Inc.
  • $23.00
  • Substantially all of the assets of Enica, LLC
  • Willdan Energy Solutions, Inc.
  • $18.00
  • Exeltech Consulting, Inc.
  • Bowman Consulting Group Ltd.
  • $5.10
  • Unistructural Support Systems Ltd.
  • NEFCO Holding Company LLC
  • n/a
  • Cascade Process Controls Inc.
  • Mako Industries, Inc.
  • n/a
  • Midwest Roofing, Siding & Windows, Inc.
  • RSS Roofing Services & Solutions, LLC
  • n/a
  • Liberty Home Builders Houston
  • Mckinley Homes Ltd
  • n/a

 

Source S&P Capital IQ as of 1/21/2025 and PCE Proprietary Data

PCE Transactions

Contacts

Nicole Kiriakopoulos

Chicago Office

224-520-1068 |

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Michael Poole

Orlando Office

407-621-2112 |

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Will Stewart

Orlando Office

407-621-2124 |

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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
EBITDA - Earnings Before Interest, Taxes, Depreciation, Amortization
LTM - Last Twelve Months
TEV - Total Enterprise Value

Sources:

  1. 1. Grossman, M. “U.S. Pending Home Sales Rose in November.” WSJ, December 30, 2024.
  2. 2. Salandro, V. “Perry Homes Expands Florida Footprint With Acquisition of MasterCraft Builder Group.” Builder, December 3, 2024.
  3. 3. Wade, J. “Building Material Prices Increase in November Led by Lumber.” NAHB, December 12, 2024.
  4. 4. Goldfarb, S. “The Fed Cut Rates. Mortgage Costs Went Up.” WSJ, December 20, 2024.
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