Despite short-term headwinds, mergers and acquisitions activity in the window and door sector remains active, said Andrew Petryk, managing director and principal, Brown Gibbons Lang & Company, during a Thirsty Thursday webinar hosted by the National Glass Association on June 26.
M&A activity peaked in late 2021 and early 2022 as companies experienced record-setting profits and attractive valuations. Sentiment, however, fell in fall 2022 and continued through 2023 amid supply chain problems. Early 2024 saw growing interest in building products assets from strategic acquirers who had been sitting on the sidelines for the past year. Marquee deals in 2024 included Miter Brands acquiring PGT Innovations, Quanex acquiring Tyman and more.
Today, M&A activity has flatlined due to market uncertainty from tariffs and political implications. Despite this, Petryk reports investor interest remains strong and there is a buildup of “dry powder,” which is capital ready to be deployed. Petryk expects a “large number” of assets to enter the market.
Watch the replay of the webinar for more insights about the economic landscape, mergers and acquisitions, and more predictions for where the market is going.