# Building and Infrastructure Market Summary

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Building and Infrastructure Market Summary

Building and Infrastructure Market Summary Q1 2015 Executive Summary – Winter 2015 Message from Lincoln This semi-annual publication by Lincoln International’s Building and Infrastructure Group focuses on sector valuations, market dynamics, M&A trends and events of interest to owners and managers of building products and construction businesses. At Lincoln International, our goal is to be the best M&A and related services advisory firm in the world focused on the mid-market. Within the building and infrastructure sector, our global footprint, deal activity and industry knowledge allow us to successfully provide unbiased M&A advisory services to companies. . Construction market update In a year where housing starts were up compared to the previous year, there were multiple signs that a recovery in the construction market is underway. In 2014, market indicators such as public company valuations, corporate earnings and M&A activity continued to increase across most building products verticals. Strong equity market performance (the Lincoln International building index was up 8.7% globally in 2014) has been driven not only by low interest rates and increased construction activity, but also from heightened expectations for continued revenue and earnings growth. The rise in single-family housing starts, recent industry momentum and increasing overall construction activity continue to support equity valuations in building products. The consensus 2015 housing starts forecast of 1.2 million, 20% above current levels, will lead to continued enthusiasm for the sector in 2015. Moreover, repair and remodel activity continued to recover and now equals pre-recession spending levels. The non-residential construction cycle, which typically trails the residential cycle by 18 to 24 months, showed signs of a recovery in 2014. While still below pre-recession highs, non-residential construction spending showed positive year over year growth of 4.0% in 2014, a trend most investors expect to continue in 2015. Overall, while the recovery continuers to be slower than expected, recent construction data gives investors comfort that construction activity will maintain its positive momentum in 2015, supporting above average multiples and M&A activity. Note: 2015 starts forecast is an average of multiple estimates 2 Residential Construction – Key Indicators Housing starts (annual rate not seasonally adjusted, units in thousands) 2,500 2,000 1,500 1,848 1,569 1,603 338 329 1,705 349 1,956 345 Multi-family housing starts led the housing recovery in 2014 2,068 1,801 352 336 346 1,355 309 500 1,273 1,231 1,359 1,499 1,611 1,716 780 283 1,465 995 925 905 1,000 1,046 622 554 587 609 109 115 178 445 471 431 Dec-09 Dec-10 Dec-11 307 352 535 618 643 Dec-12 Dec-13 Nov-14 LTM 245 0 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Single Family Starts Source: Census Bureau Existing home sales (units in thousands and months) Current Existing Sales: 4,930 Months Supply: 5.1 7,000 12 8 5,000 6 4,000 4 3,000 2 Existing Home Sales Multi-Family Starts 14 10 6,000 Dec-08 New home sales (units in thousands and months) Existing Months Supply Existing Home Sales 8,000 Dec-07 1,600 1,400 1,200 1,000 800 600 400 200 0 Current New Sales: 438 Months Supply: 5.8 Existing home sales reached 4.9 million in 2014 while existing months supply, which peaked at 11.9 months in July 2010, currently stands at 5.1 months 12 10 8 6 4 2 New Home Sales Existing Months Supply Source: NAR 14 New Months Supply Dec-01 New Home Sales Dec-00 New Months Supply Source: Census Bureau New home sales and new months supply have stabilized 3 Residential Construction – Regional Performance Midwest housing starts (LTM units in thousands) Northeast housing starts (LTM units in thousands) 250 400 350 10 Year Average: 184 Current: 161 250 200 150 200 Housing Starts Housing Starts 300 100 10 Year Average: 115 Current: 108 150 100 50 50 0 Nov-04 Nov-06 Nov-08 Nov-10 Nov-12 Source: Census Bureau 1000 500 10 Year Average: 553 Current: 492 800 600 400 Housing Starts 600 Nov-10 Nov-12 Nov-14 10 Year Average: 265 Current: 234 400 300 200 100 200 Source: Census Bureau Nov-08 West housing starts (LTM units in thousands) 1200 0 Nov-04 Nov-06 Source: Census Bureau South housing starts (LTM units in thousands) Housing Starts 0 Nov-04 Nov-14 Nov-06 Nov-08 Nov-10 Nov-12 Nov-14 0 Nov-04 Nov-06 Nov-08 Nov-10 Nov-12 Nov-14 Source: Census Bureau 4 Residential Construction – Starts Relative to Macro Economic Indicators 2,300 2,100 Housing Starts 1,900 1,700 1,500 1,300 1,100 900 700 500 2004 2005 2006 2007 2008 2009 Housing Starts Source: Census Bureau, BLS 0.0% 1.0% Residential construction 2.0% activity remains highly correlated to Current 3.0% unemployment Starts: 995 4.0% Unemployment Rate: 5.8% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 2010 2011 2012 2013 2014 Inverted Unemployment Rate Housing starts vs. unemployment rate (LTM units in thousands) Unemployment Rate 2,500 500 2,000 250 1,500 0 1,000 -250 500 0 2004 Current Starts: 995 Change in Unemployment: 321 2005 2006 2007 2008 2009 Change in Non-Farm Payrolls 2010 2011 2012 2013 -500 Change in Non-Farm Payrolls Housing Starts Housing starts vs. change in non-farm payrolls (LTM units in thousands and jobs in thousands) -750 2014 Housing Starts Source: Census Bureau, BLS 5 Non-Residential Construction – Key Indicators Construction put in place: non-residential vs. residential construction ($ in millions) Non-residential construction has begun to recover but remains significantly below its prerecession highs $1,400 $1,178 $1,200 $1,153 $1,109 $1,038 $994 $948 $1,000 $856 $670 $800 $417 $600 $509 $570 $418 $466 $509 $584 $440 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 $698 $691 $975 $369 $358 $817 $239 $256 $319 $578 $541 $561 $564 $592 $617 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Nov 2014 LTM $254 $439 $961 $883 $780 $296 $572 $400 $200 $832 $0 Dec-07 Dec-08 Non-Residential Source: Census Bureau Non-residential construction spending by segment Residential Architectural Billings Index 100% 60 75% 55 50% 50 45 25% Current: 50.9 Base: 50.0 40 The Architectural Billings Index shows increased enthusiasm 0% 35 Infrastructure Manufacturing Office Commercial Healthcare Lodging Since the recession, infrastructure spending has remained relatively constant and comprises a larger percentage of non-residential activity 30 2002 2004 2006 2008 2010 2012 2014 Source: AIA Source: Census Bureau 6 Repair and Remodel – Key Indicators Residential remodeling spending ($ in millions) $160 $145 The repair and remodel market is back to prerecession levels $140 $131 $98 $100 17% $80 $57 $66 $67 $72 $75 $81 $133 40.0% $112 30.0% $85 20.0% 15% 14% 8% 5% 4% $40 $112 $126 $100 15% 9% $121 $120 $115 $120 $60 50.0% $144 $139 10.0% 11% 8% 4% 3% 0% $20 -4% -14% 2007 2008 6% 8% 0.0% 0% -10.0% -7% $0 -20.0% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2009 2010 2011 2012 2013 2014E Source: JCHS, U.S. Census Bureau Home Depot vs. Lowe’s quarterly same store sales growth Remodeling market index 15% 60 10% 50 5% 40 0% 30 -5% Current Market: 57 Future Market: 58 20 Current Home Depot: 5.2% Lowe’s: 5.1% -10% -15% 10 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Current Market Conditions Source: NAHB Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Home Depot Future Market Indicators Lowe's Source: Company filings 7 Building Products Trading Multiples Building products index EV / LTM EBITDA multiples over time Heightened investor expectations for continued growth have driven higher trading multiples 14x 13x 12x 11x 10x 9x Average: 8.7x Current: 11.1x 8x 7x 6x Jan-96 Jan-98 Jan-00 Jan-02 Jan-04 Jan-06 Jan-08 Jan-10 Jan-12 Jan-14 Source: CapIQ as of December 31, 2014 Note: Index is calculated using an average multiple of 70 publicly traded building products companies Building products / S&P 500 Multiple Relationship over time 1.4 Historically, building products assets have traded at a discount to the broader S&P index. Currently, the index is trading at a 8% premium 1.3 1.2 1.1 1.0 0.9 0.8 Average: 0.86 Current: 1.08 0.7 0.6 0.5 0.4 Jan-96 Jan-98 Jan-00 Jan-02 Jan-04 Jan-06 Jan-08 Jan-10 Jan-12 Jan-14 Source: CapIQ as of December 31, 2014 8 Building Products Stock Performance Building products index EV vs. housing permits over time 200 150 Current EV: 192, Permits: 61 100 Base: 100 50 0 Feb-01 Heightened investor expectations have enabled stock prices to outperform housing activity Feb-02 Feb-03 Feb-04 Feb-05 Feb-06 Feb-07 Feb-08 Permits Feb-09 Feb-10 Feb-11 Feb-12 Feb-13 Feb-14 EV Source: Census Bureau and CapIQ as of December 31, 2014 Note: Index is weighted by EV and is rebalanced monthly (January 2001 set to 100) Residential construction vs. non-residential construction stock price performance over time 150 Following the recession, companies more exposed to residential construction have outperformed nonresidential companies Base: 100 100 Current Non-Res: 85, Res: 148 50 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Non-Residential Construction Source: CapIQ as of December 31, 2014 Note: Index is weighted by EV and is rebalanced monthly (December 2006 set to 100) Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Residential Construction 9 Building Products Stock Performance by Vertical Building products index EV by vertical over time 300 300 Aggregates 250 250 200 200 150 150 Current: 210 High: 282 100 50 Jan-01 250 Distributors Jan-03 Jan-05 Jan-07 Jan-09 Jan-11 Jan-13 50 Jan-01 200 Manufacturers 200 Current: 230 High: 258 100 Jan-03 Jan-05 Jan-07 Jan-09 Jan-11 Jan-13 Retailers 150 150 100 50 Jan-01 500 Current: 192 High: 218 Jan-03 Jan-05 Jan-07 Jan-09 Jan-11 Jan-13 100 Current: 178 High: 178 50 Jan-01 300 Home Builders 400 250 300 200 200 Jan-05 Jan-07 Jan-09 Jan-11 Jan-13 Lumber 150 Current: 340 High: 452 100 0 Jan-01 Jan-03 Jan-03 Jan-05 Jan-07 Jan-09 Jan-11 Jan-13 Current: 267 High: 267 100 50 Jan-01 Jan-03 Jan-05 Jan-07 Jan-09 Jan-11 Jan-13 Source: CapIQ as of December 31, 2014 Note: Index is weighted by EV and is rebalanced monthly (January 2000 set to 100) Many building product verticals are at or above pre-recession highs in terms of enterprise value 10 Building Products Trading Multiples ($ in thousands except per share data) Aggregates CEMEX, S.A.B. de C.V. Corporación Moctezuma, SAB de CV CRH plc Eagle Materials Inc. HeidelbergCement AG Holcim Ltd. Lafarge S.A. Martin Marietta Materials Inc. Taiheiyo Cement Corp. Titan Cement Company S.A. Vicat SA Vulcan Materials Company $ Stock Market Enterprise EBITDA Net Debt / Price Cap Value Margin LTM EBITDA 10.19 3.10 24.09 76.03 71.34 71.83 70.30 110.32 3.16 23.20 72.14 65.73 $ 12,517 2,725 17,808 3,821 13,407 23,384 20,209 7,421 3,910 1,799 3,183 8,657 $ 29,192 2,611 22,423 4,123 24,017 36,502 35,030 8,968 7,341 2,594 4,993 10,571 17.3% 34.2% 6.5% 26.3% 16.9% 19.4% 20.0% 21.3% 13.5% 14.9% 17.6% 18.4% Mean Median Distributors Beacon Roofing Supply, Inc. Builders FirstSource, Inc. HD Supply Holdings, Inc. Pool Corp. Watsco Inc. WESCO International Inc. Wolseley plc $ 27.80 6.87 29.49 63.44 107.00 76.21 57.45 $ 1,374 674 5,774 2,755 3,475 3,390 14,939 $ 1,565 990 11,175 3,138 4,069 4,797 16,095 5.6% 3.8% 9.0% 9.0% 8.0% 6.6% 6.5% Mean Median Retailers The Home Depot, Inc. Kingfisher plc Low e's Companies Inc. Travis Perkins plc Mean Median $ 104.97 5.31 68.80 28.94 $ 138,332 12,426 66,936 7,098 $ 152,878 11,714 76,520 7,560 14.5% 8.6% 11.3% 7.8% EV/LTM Revenue EV/NTM EBITDA Revenue EBITDA 5.8x -0.6x 3.2x 1.2x 3.2x 2.8x 3.5x 3.0x 3.3x 3.0x 3.0x 3.6x 1.9x 4.0x 0.9x 4.3x 1.3x 1.8x 1.9x 3.8x 1.0x 1.7x 1.5x 3.6x 11.0x 11.8x 13.8x 16.2x 7.9x 9.5x 9.3x 17.6x 7.1x 11.5x 8.8x 19.7x 1.8x n/a 0.9x 3.1x 1.4x 1.8x 2.1x 2.5x 1.0x 1.6x 1.7x n/a 9.5x n/a 10.1x 9.7x 7.6x 8.8x 9.6x 11.1x 7.5x 9.1x 8.4x 14.5x 2.9x 3.1x 2.3x 1.8x 12.0x 11.2x 1.8x 1.7x 9.6x 9.5x 1.5x 5.2x 6.7x 1.9x 1.1x 2.8x 0.9x 0.7x 0.6x 1.2x 1.4x 1.0x 0.6x 0.7x 12.1x 16.3x 13.8x 15.8x 13.1x 9.4x 11.3x 0.6x 0.6x 1.2x 1.3x 1.0x 0.6x 0.7x 9.7x 11.4x 11.5x 13.8x 11.9x 8.4x 10.3x 2.9x 1.9x 0.9x 0.7x 13.1x 13.1x 0.9x 0.7x 11.0x 11.4x 1.2x -0.5x 1.5x 0.7x 1.9x 0.6x 1.4x 0.8x 12.9x 7.2x 12.2x 10.4x 1.8x 0.7x 1.3x 0.8x 11.8x 7.6x 11.1x 9.8x 0.7x 1.0x 1.2x 1.1x 10.7x 11.3x 1.2x 1.1x 10.1x 10.5x Source: Capital IQ as of 12/31/14 11 Building Products Trading Multiples ($ in thousands except per share data) Stock Market Enterprise EBITDA Net Debt / Price Cap Value Margin LTM EBITDA EV/LTM Revenue EV/NTM EBITDA Revenue EBITDA Manufacturers AAON Inc. Advanced Drainage Systems, Inc. Allegion Plc American Woodmark Corp. Armstrong World Industries, Inc. ASSA ABLOY AB Acuity Brands, Inc. Boral Limited Fletcher Building Ltd. Fortune Brands Home & Security, Inc. Griffon Corporation Headw aters Incorporated Interface Inc. James Hardie Industries plc Kingspan Group plc Lennox International, Inc. Masco Corporation Masonite International Corporation Mohaw k Industries Inc. NCI Building Systems Inc. Ow ens Corning PGT, Inc. Ply Gem Holdings, Inc Quanex Building Products Corporation Compagnie de Saint-Gobain S.A. Sanw a Holdings Corporation The Sherw in-Williams Company Simpson Manufacturing Co., Inc. Trex Co. Inc. USG Corporation Wienerberger AG Mean Median $ 22.39 22.98 55.46 40.44 51.12 53.01 140.07 4.34 6.48 45.27 13.30 14.99 16.47 10.80 17.37 95.07 25.20 61.46 155.36 18.52 35.81 9.63 13.98 18.78 42.64 7.04 263.04 34.60 42.58 27.99 13.85 $ 1,220 1,216 5,309 640 2,806 19,629 5,951 3,395 4,441 7,142 658 1,102 1,091 4,809 2,980 4,567 8,978 1,835 11,325 1,362 4,211 459 948 679 23,899 1,661 25,251 1,694 1,363 4,051 1,620 $ 1,177 1,956 6,373 513 3,717 22,171 5,752 3,965 5,755 7,654 1,367 1,562 1,298 5,109 3,121 5,116 11,056 2,172 13,616 1,531 6,395 610 1,935 559 34,664 1,871 26,671 1,435 1,362 5,959 2,536 22.7% 11.9% 18.9% 6.4% 10.5% 16.2% 14.4% 8.9% 9.7% 12.2% 7.8% 15.5% 10.9% 21.0% 9.6% 11.3% 11.4% 5.7% 14.5% 4.2% 12.5% 15.0% 7.3% 8.7% 9.9% 9.4% 13.3% 16.9% 20.1% 13.0% 9.4% -0.5x 2.9x 2.6x -2.5x 3.2x 2.3x -0.6x 1.8x 2.0x 1.0x 4.6x 3.6x 1.9x 1.0x 0.6x 1.5x 1.9x 3.0x 2.0x 3.0x 3.2x 3.6x 9.3x -2.3x 2.1x 0.8x 1.0x -2.1x 0.0x 4.0x 2.8x 3.4x 1.7x 3.0x 0.7x 1.4x 2.9x 2.4x 0.9x 0.8x 1.7x 0.7x 2.0x 1.3x 3.2x 1.2x 1.5x 1.3x 1.2x 1.8x 1.1x 1.2x 2.2x 1.3x 0.9x 0.6x 0.6x 2.4x 1.9x 3.6x 1.6x 0.7x 15.0x 14.5x 16.0x 10.1x 13.0x 18.2x 16.7x 10.6x 8.0x 14.3x 8.8x 12.7x 12.1x 15.3x 13.0x 13.7x 11.4x 21.2x 12.1x 26.7x 9.6x 14.3x 18.3x 10.8x 6.1x 6.8x 18.2x 11.4x 17.8x 12.4x 7.7x 3.0x 1.5x 2.9x 0.6x 1.4x 2.8x 2.1x 1.0x 0.8x 1.7x 0.7x 1.8x 1.3x 2.9x 1.3x 1.5x 1.3x 1.1x 1.7x 0.9x 1.1x 1.7x 1.0x 0.9x 0.7x 0.6x 2.2x 1.8x 3.2x 1.5x 0.7x 12.9x 10.2x 13.7x 6.8x 9.6x 15.6x 14.0x 8.7x 8.1x 10.7x 8.0x 9.9x 10.6x 12.8x 12.7x 11.6x 10.2x 11.8x 10.8x 11.9x 8.2x 9.0x 11.6x 9.6x 6.6x 6.8x 15.4x 9.5x 14.3x 9.7x 6.1x 1.9x 2.0x 1.7x 1.4x 13.5x 13.0x 1.5x 1.4x 10.6x 10.2x Source: Capital IQ as of 12/31/14 12 Building Products Trading Multiples ($ in thousands except per share data) Hom e Builders Beazer Homes USA Inc. DR Horton Inc. Hovnanian Enterprises Inc. KB Home Lennar Corp. M/I Homes, Inc. MDC Holdings Inc. Meritage Homes Corporation NVR, Inc. PulteGroup, Inc. Ryland Group Inc. Standard Pacific Corp. Taylor Morrison Home Corporation Toll Brothers Inc. WCI Communities Inc. $ Stock Market Enterprise EBITDA Net Debt / Price Cap Value Margin LTM EBITDA 19.36 25.29 4.13 16.55 44.81 22.96 26.47 35.99 1,275.33 21.46 38.56 7.29 18.89 34.27 19.58 $ 531 9,239 600 1,519 8,925 562 1,292 1,408 5,224 7,957 1,778 2,042 625 6,012 509 $ 1,718 12,293 2,367 3,803 14,425 1,061 1,936 2,245 5,368 8,660 2,876 3,926 3,412 8,820 619 5.3% 11.5% 5.3% 6.5% 12.3% 7.6% 6.3% 10.4% 11.2% 11.9% 10.8% 15.2% 12.3% 11.4% 7.7% Mean Median Lum ber Ainsw orth Lumber Co. Ltd. Boise Cascade Company Canfor Corp. Louisiana-Pacific Corp. Norbord, Inc. Universal Forest Products Inc. West Fraser Timber Co. Ltd. Mean Median $ 2.88 37.15 25.59 16.56 22.30 53.20 57.40 $ 693 1,464 3,465 2,355 1,192 1,063 4,812 $ 911 1,596 3,809 2,537 1,558 1,132 5,130 7.7% 5.3% 15.6% 2.3% 8.5% 5.0% 14.4% EV/LTM Revenue EV/NTM EBITDA Revenue EBITDA 15.4x 3.3x 15.0x 15.9x 5.8x 5.0x 6.1x 4.0x 0.3x 1.0x 4.1x 5.4x 4.6x 6.3x 4.0x 1.2x 1.5x 1.1x 1.7x 2.0x 0.9x 1.2x 1.1x 1.2x 1.5x 1.2x 1.7x 1.2x 2.3x 1.8x 22.2x 13.3x 21.7x 26.5x 16.5x 11.8x 18.4x 10.8x 11.0x 12.8x 10.9x 11.3x 10.1x 19.7x 23.0x 1.0x 1.2x 1.0x 1.4x 1.7x 0.9x 1.0x 0.9x 1.1x 1.4x 1.0x 1.5x 1.1x 2.1x 1.2x 12.6x 10.2x 12.8x 13.8x 11.4x 11.3x 9.0x 8.9x 9.4x 8.3x 8.2x 7.0x 8.1x 12.9x 10.4x 6.4x 5.0x 1.4x 1.2x 16.0x 13.3x 1.2x 1.1x 10.3x 10.2x 7.4x 0.7x 0.3x 4.0x 3.7x 0.5x 0.7x 2.3x 0.5x 1.3x 1.3x 1.3x 0.4x 1.5x 29.7x 8.5x 8.3x nmf 15.1x 8.9x 10.7x 2.0x 0.4x 1.2x 1.2x 1.3x 0.4x 1.4x 13.7x 6.9x 7.1x 21.2x 8.6x 7.6x 7.8x 2.5x 0.7x 1.2x 1.3x 13.5x 9.8x 1.1x 1.2x 10.4x 7.8x Source: Capital IQ as of 12/31/14 13 Building Products Recent M&A Transactions ($ in millions) Date 1 Dec-14 Valuation Target Target Description Acquiring Company HeidelbergCement Bricks Unit Manufactures brick and roof tile building products Lone Star Funds Ibstock Brick Limited Manufactures clay bricks CRH Clay and Concrete Businesses Enterprise Value Revenue Multiple $1,400 - Bain Capital Europe 649 - Manufactures clay and concrete building products Bain Capital Private Equity 648 - Lumber Specialties Manufactures and distributes structural building components US LBM Holdings - - Ainsworth Lumber Manufactures engineered wood products Norbord 890 2.3x Dec-14 Farrow & Ball Manufactures paints and wallpapers Ares Private Equity Group 432 - Nov-14 Airxcel Manufactures air conditioning, heating, ventilating and related appliances Yukon Partners, One Rock Capital Partners - - Nov-14 CRS Proppants Provides resin coated sands for oil and gas well fracturing applications Eagle Materials 225 - Vicwest Inc. Building Products Division Offers products and services spanning all major construction industry segments Kingspan Group 136 - Vicwest Inc. Westeel Division Manufactures grain storage systems Ag Growth International 195 - Nov-14 CENTRIA Manufactures architectural insulated metal panel wall and roof systems and provides coil coating services NCI Building Systems 245 1.1x Nov-14 Connor Sport Court International Designs and manufactures sports surfacing and flooring products Gerflor USA - - Nov-14 Icynene Manufactures spray polyurethane foam insulation products Friedman Fleischer & Lowe Capital Partners - - Nov-14 Hanson Structural Precast Manufactures structural and architectural precast components Wells Concrete Products - - Nov-14 Pactiv Building Insulation Division Manufactures XPS insulation products Kingspan Group 82 - Oct-14 Trussbilt Manufactures detention security products Sentinel Capital Partners - - Oct-14 National Diversified Sales Manufactures storm water management, landscape irrigation and water flow management systems NORMA Group 285 2.2x Oct-14 Peterson Industries Manufactures shower doors, mirror doors, closet doors and glass enclosures Aldora Aluminum & Glass Products - - 1 Dec-14 1 Dec-14 1 Dec-14 1 Dec-14 1 1 Nov-14 1 Nov-14 1 (1): Announced Date 14 Building Products Recent M&A Transactions ($ in millions) Valuation Date Target Target Description Acquiring Company Oct-14 Corialis Group Manufactures windows and doors Advent International Oct-14 VantaCore Partners Manufactures aggregates for infrastructure, energy, commercial and residential markets Natural Resource Partners Oct-14 Tell Manufacturing Manufactures and distributes commercial and residential locks and door hardware Spectrum Brands Sep-14 CGI Windows & Doors Manufactures aluminum and vinyl impact resistant windows and doors Sep-14 Simonton Windows Sep-14 Enterprise Value Revenue Multiple - - 205 - - - PGT Industries 111 2.9x Manufactures vinyl framed windows and patio doors Ply Gem Industries 130 - Dura-Line Holdings Manufactures and distributes high-density polyethylene (HDPE) based conduits, ducts and pressure-pipe solutions Mexichem 630 - Sep-14 Fortune Brands Windows Manufactures vinyl framed windows and patio doors Ply Gem Industries 130 - Sep-14 Chase Industries Manufactures made-to-order impact traffic doors and specialty door systems Audax Group - - Sep-14 Metro Ready Mix Concrete Supplies ready mix concrete Smyrna Ready Mix - - Sep-14 Aquatic US Holdings Manufactures bathtubs and showers The Sterling Group - - Sep-14 Versatex Building Products Manufactures cellular PVC building products serving both the new construction and R&R markets Highlander Partners - - Aug-14 Brundage-Bone Concrete Pumping Provides concrete pumping and material placements services in North America. Peninsula Pacific Strategic Partners 171 - Aug-14 Hurd Windows and Doors Manufactures windows and doors Sierra Pacific Industries - - Jul-14 Custom Window Systems Manufactures windows and doors Nautic Partners - - Jul-14 Sentry Safe Manufactures protective security containers Master Lock Company 118 0.8x Jul-14 Tensar Corporation Provides site development solutions Castle Harlan 400 - Lafarge Tarmac Holdings Manufactures ready mix concrete, cement and aggregates and asphalt Lafarge 3,032 - 1 Jul-14 (1): Announced Date 15 The Middle Market Leader in Building and Infrastructure Recent Lincoln International Building and Infrastructure transactions CHS Capital has sold Dura-Line Corporation to Mexichem for $630 million Graham Partners has sold National Diversified Sales, Inc. to Norma Group for $285 million The Riverside Company has sold Connor Sport Court International, Inc. to Gerflor SAS Southfield Capital Advisors has sold RCR International Inc. to Peak Rock Capital Industrial Opportunity Partners has sold Carlson Systems to TENEX Capital Management has refinanced Unitranche Acquisition Facility Revolving Credit Facility Sentry Group, Inc. has been sold to Fortune Brands Home & Security for $117.5 million Magnus Pacific Corporation has been sold to Great Lakes Dredge & Dock Corporation Sentinel Capital Partners has sold Chase Doors to Audax Group Hartland Controls LLC has recapitalized with Incline Equity Partners Opus Group of Companies has been sold to Beaulieu International Group Resilience Capital Partners has sold Taylor Lumber, Inc. to Ohio Valley Veneer, Inc. Officer contacts Jim Lawson Managing Director & Chairman [email protected] lincolninternational.com +1-312-580-8326 Jeff Corum Managing Director [email protected] lincolninternational.com +1-312-580-6282 Dr. Burkhard Weber Managing Director [email protected] lincolninternational.com +1-212-257-7737 Carl Gatenio Vice President [email protected] lincolninternational.com +1-312-506-2764 Contributors Scott Molinaro, Associate Tom O’Sullivan, Analyst 16