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Building Products Quarterly
Economic overview
1
Building Products, Building Materials, and Homebuilding companies continued their steady growth during the fourth quarter.
New housing starts continue to rise after they topped the 1.1 million unit mark in 2015, and Residential Repair & Remodel and
Commercial Construction spending are also experiencing growth rates in the high single digits.
All but four of the Building Products subsectors grew their cumulative sales during the first quarter, with year-over-year growth
rates mostly coming in stronger than in the previous quarter. Growth rates by subsector were as follows: Cabinetry (+27.2%,
aided by Fortune Brands’ acquisition of Norcraft), Metal Structures (+15.3%, aided by acquisitions at both NCI and Gibraltar),
Recreational Vehicles / Manufactured Housing (+14.8%, aided by acquisitions at both Drew and Patrick Industries), Distribution
/ Installation (+9.1%), Plumbing (+6.9%), Lighting (+6.0%), Roofing (+6.0%), Insulation (+5.9%), Windows & Doors (+2.7%),
Siding & Decking (+2.2%), Glass (+1.6%), Flooring (+0.5%), and HVAC (+0.5%), while four sectors saw declines: Wood
Products (-1.2%), Paint (-1.6%), Tools (-3.3%), and Locks & Security (-4.1%). Momentum carried into the first quarter with the
announcement of a few large cap M&A deals including the announced acquisition of Valspar by Sherwin Williams, announced
acquisition of Rona by Lowe’s, and the announced acquisition of Icopal by GAF. Middle market M&A activity also continued
unabated. Debt activity remained robust, while equity markets activity was very quiet with a secondary offering by Builders
FirstSource marking the sole transaction during the quarter.
Building Material companies also increased their top line by a combined 5.5%, aided by continuous acquisition activity at
Summit Materials and U.S. Concrete. These two companies were also the only ones to issue new debt during the quarter.
Public homebuilders continue to grow their top line at a very fast clip (+21.7%). This marked the fifth period out of the last six
quarters that homebuilders have grown their top line by over 20% year-over-year. Despite lower affordability, higher household
formation and rising rents continue to sustain steady growth in housing starts. Of note, PulteGroup acquired John Wieland
Homes for $540 million. In addition, The New Home Company completed a secondary equity offering, while Woodside Homes
withdrew its IPO filing during the quarter.
Disclosure: KeyBanc Capital Markets is a trade name under which corporate and investment banking products and services of KeyCorp and i ts subsidiaries, KeyBanc Capital Markets Inc., Member
NYSE/FINRA/SIPC, and KeyBank National Association (“KeyBank N.A.”), are marketed. Securities products and services are offered by KeyBanc Capital Markets Inc. and its licensed securities representatives,
who may also be employees of KeyBank N.A. Banking products and services are offered by KeyBank N.A. This report was not issued by our research department. The information contained in this report has
been obtained from sources deemed to be reliable but is not represented to be complete, and it should not be relied upon as such. This report does not purport to be a complete analysis of any security, issuer, or
industry and is not an offer or a solicitation of an offer to buy or sell any securities. This report is prepared for general information purposes only and does not consider the specific investment objectives, financial
situation and particular needs of any individual person or entity.
Construction spending was $1,113.2 billion over the February 2016 TTM period
Residential Spending increased to $429.5 billion in February 2016
Nonresidential Spending increased to $ 683.7 billion in February 2016
Source: U.S. Census Bureau
402 451538
618 620500
358254 249 253 287 342 375 423 429
446440
453
487 547652
711
651557 536
574569
618674 684
848891
991
1,104 1,167 1,1521,068
905806 788
861911
993
1,097 1,113
0
200
400
600
800
1,000
1,200
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 LTM
$ in
bill
ion
s
Residential Nonresidential
Construction spending
4.9%
0%
2%
4%
6%
8%
10%
12%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
30-Year Mortgage Rate[1]
2
Unemployment Rate Personal Savings Rate
Consumer Confidence
Source: Bureau of Labor Statistics; Federal Reserve Bank of Philadelphia; The Conference Board; Freddie Mac
[1] Upfront points stand at 0.6% currently
92.2
0
25
50
75
100
125
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
5.1%
0%
2%
4%
6%
8%
10%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
3.66%
0%
2%
4%
6%
8%
10%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Drivers of residential new construction
Existing Home Sale Prices
3
Existing Home Sales
Source: U.S. Census Bureau; National Association of Homebuilders; National Association of Realtors
$210,800
$0
$50,000
$100,000
$150,000
$200,000
$250,000
Feb-00 Feb-02 Feb-04 Feb-06 Feb-08 Feb-10 Feb-12 Feb-14 Feb-16
5.1 mm
0
2
4
6
8
Feb-00 Feb-02 Feb-04 Feb-06 Feb-08 Feb-10 Feb-12 Feb-14 Feb-16
Num
ber
of U
nits
Sol
d (S
aar)
In Millions
1.0 1.0 1.0 1.0 1.0 1.0 0.8 0.8 0.9
0.8 0.8
1.2 1.3
1.1
0.9 0.9
1.2
1.5 1.4
1.2
0.9 0.7 0.7
1.1 1.1 1.1 1.2 1.1 1.1 1.0
0.9 0.8 1.0
1.1 1.2 1.1 1.2 1.1
1.3 1.3 1.2 1.3 1.4 1.5
1.6 1.7
1.5
1.0
0.6 0.4 0.5 0.4
0.5 0.6 0.6 0.7 0.9
0.3 0.3 0.5
0.6 0.6 0.5
0.4 0.4
0.6 0.7 0.6
0.9
1.0
0.9
0.4 0.3
0.4
0.5 0.6
0.6
0.4
0.4 0.4
0.6 0.7 0.7 0.6
0.5 0.4
0.4
0.3
0.2
0.2 0.2
0.3
0.3 0.3 0.3
0.3 0.3 0.3 0.3
0.3
0.3
0.3
0.4
0.3
0.3
0.3
0.1 0.1 0.2
0.2
0.3 0.4
0.4
0.4
1.3 1.3
1.5
1.6 1.5
1.5
1.2
1.3
1.5 1.5 1.4
2.1
2.4
2.0
1.3
1.2
1.5
2.0 2.0
1.7
1.3
1.1 1.1
1.7 1.7 1.7
1.8
1.6
1.5
1.4
1.2
1.0
1.2 1.3
1.5 1.4
1.5 1.5
1.6 1.6 1.6 1.6
1.7
1.8
2.0
2.1
1.8
1.4
0.9
0.6 0.6 0.6
0.8
0.9 1.0
1.1 1.3
0.0
0.5
1.0
1.5
2.0
2.5
1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016E
(mill
ions
)
Single Unit Starts Multi Unit Starts
Average: 1.4
Housing starts
Drivers of repair & remodel spending
Change in Same Store Sales
5.2%
7.1%
(15%)
(9%)
(3%)
3%
9%
15%
2007 2008 2009 2010 2011 2012 2013 2014 2015
Sam
e S
tore
Sal
es
Lowe's Companies Inc. The Home Depot, Inc.
4
Source: Home Depot and Lowe’s SEC filings; Joint Center for Housing Studies, Harvard University
65
57
66 66 72 74
81 85
98 100
115
134
148
141
122
115 119 121
126
133
143 147
$0
$40
$80
$120
$160
1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
$s in
bill
ion
s
Home center retailer performance
Repair & Remodel Spending
5
Source: The American Institute of Architects; Institute for Supply Management; NCI Investor Presentation
ABI Index PMI Index
Commercial Construction Activity
49.5%
0.0%
15.0%
30.0%
45.0%
60.0%
75.0%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
PM
I
50.3
0
15
30
45
60
75
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
AB
I
1,2301,305
1,315
1,205
1,210
1,340
1,535
1,315
980 985
1,130
1,335
1,450
1,2601,245
1,005
1,105
1,350
1,530
1,4601,470
1,4101,400
1,200
990930
970
1,144
1,2871,2951,350
1,8001,840
1,860
1,670
1,4371,404
1,457
1,528
1,637
1,666
1,379
776
680 704
781
874
996942
1,005
1,110
0
400
800
1,200
1,600
2,000
1967 1972 1977 1982 1987 1992 1997 2002 2007 2012 2017P
Squ
are
Fee
t (in
milli
ons)
Average: 1,276
Drivers of commercial construction
40.5%
59.8%
4.2%
31.9%
(30%)
(20%)
(10%)
0%
10%
20%
30%
40%
50%
60%
70%
Apr-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16
Building Products Building Materials Home Builders S&P 500
6
Stock Index Performance (through March 31, 2016)
Source: Bloomberg; Thomson Reuters
[1] Includes AAON, ALLE, AMWD, AOS, APOG, AWI, AYI, BCC, BECN, BLD, BLDR, BXC, CREE, CSL, CSTE, CVCO, TSX:CWX, DOOR, DW,
DXYN, FBHS, GFF, HDS, HUBB, HW, TSX: HWD, IBP, IIIN, IR, ASX:JHX, LII, LPX, LYTS, MAS, MHK, NCS, NTK, NX, OC, TSX:OSB, PATK, PGEM,
PGTI, POOL, ROCK, SHW, SSD, STCK, SWK, TGLS, TILE, TREX, UFPI, WMS, LSE:WOS, WSO
[2] Includes CBPX, EXP, MLM, SUM, USCR, USG, VMC
[3] Includes AVHI, BZH, CAA, CCS, DHI, HOV, KBH, LEN, LGIH, MDC, MHO, MTH, NVR, NWHM, PHM, TMHC, TOL, TPH, UCP, WCIC, WLH
Investment Grade and High Yield Debt Spreads (through March 31, 2016)
During the past 3 months,
returns on the Building
Products Index registered
a high of 8.5% and a low
of (16.2%)
During the past 3 months,
returns on the Building
Materials Index registered
a high of 13.2% and a low
of (15.9%)
During the past 3 months,
returns on the Home
Builders Index registered
a high of 1.3% and a low
of (19.2%)
During the past 3 months,
returns on the S&P 500
had a high of 2.6% and a
low of (9.1%)
• 90-day: 8.5%
• 12-month: 5.6%
• 3-year: 40.5%
Building Products
Index[1]
• 90-day: 13.2%
• 12-month: 11.4%
• 3-year: 59.8%
Building Materials
Index[2]
• 90-day: 1.0%
• 12-month: (8.8%)
• 3-year: 4.2%
Home Builders
Index[3]
• 90-day: 2.3%
• 12-month: 0.0%
• 3-year: 31.9%
S&P 500
Market performance
148
236
443
664
0
200
400
600
800
1,000
Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16
Sp
read
to M
atu
rity
(b
ps)
A Index BBB Index BB Index B Index
7
84 Lumber
– 3/1/16: Launched new line of portable tiny homes, becoming the first-ever major retailer to tap into this new market
Apex Tool Group
– 2/8/16: Appointed James J. Roberts as CEO and a member of the Board of Directors
Apogee Enterprises, Inc.
– 12/1/15: Announced expansion of its flagship manufacturing facility in Owatonna, Minnesota, adding over 360,000 square
feet to the site’s existing footprint of 1.2 million square feet
Armstrong World Industries, Inc.
– 3/16/16: Announced that the Securities and Exchange Commission has declared Armstrong Flooring’s Registration
Statement on Form 10 effective
Beacon Roofing Supply, Inc.
– 3/11/15: Appointed Gregory Jorgensen as Vice President and Chief Accounting Officer
Bluelinx Holdings Inc.
– 1/26/16: Received notice from the New York Stock Exchange (NYSE) that it was not in compliance with NYSE Listed
Company Manual because its average global market capitalization over a consecutive 30 trading-day period was less than
$50 million and its stockholders’ equity was less than $50 million
– 12/14/15: Announced the approval of stock split of 1:10 ratio by Board of Directors in its 2016 annual stockholders’ meeting
BMC Stock Holdings, Inc.
– 12/1/15: Appointed Peter Alexander as President, CEO and a member of the Board of Directors, Jim Major as Executive Vice
President, Chief Financial Officer and Treasurer and David Bullock as Chairman of the Board of Directors
Boise Cascade
– 2/24/16: Announced the appointments of Richard Viola as a Senior Vice President of Sales and Marketing for Building
Materials Distribution, Mike Brown as Vice President of Operations for Wood Products, Mary Jo Nyblad as Vice President of
Commodity Sales and Marketing for Wood Products and Nate Jorgenson as Vice President of Engineered Wood Products
Carlisle Companies Incorporated
– 2/11/15: Announced the relocation of its headquarters from Charlotte, NC to Phoenix, AZ
– 12/11/15: Announced the appointment of D. Christian Koch as CEO and a member of the Board of Directors
Contech Engineered Solutions LLC
– 2/24/16: Appointed Jim Waters as Chief Financial Officer
Continental Materials Corporation
– 12/31/15: Announced the retirement of Joseph J. Sum as Chief Financial Officer and appointed Mark S. Nichter as his
successor
Crystal Window & Door Systems, Ltd.
– 2/15/16: Announced that it has started production of aluminum windows and patio doors at the new 336,500-square-foot
northeastern Pennsylvania facility
Dwyer Group, Inc.
– 1/13/16: Appointed Lisa Zoellner as Chief Strategy and Marketing Officer
Fortune Brands
– 1/14/16: Appointed Brett E. Finley as President of Therma-Tru business unit, effective February 15, 2016
Source: Company websites
Building Products: Key company news
8
Gibraltar Industries
– 3/29/16: Announced retirement of Paul Murray as Senior Vice President of Human Resources and Organizational
Development
Headwaters Incorporated
– 2/23/16: Announced acquisition of the technology to manufacture a wide variety of concrete products without the use of
portland cement
Hubbell Inc.
– 12/30/15: Announced the retirement of Gary N. Amato as Executive Vice President, Electrical Segment
– 12/23/15: Announced the reclassification of the Company's dual-class common stock into a single class of common stock
– 12/9/15: Appointed Maria R. Lee as Vice President of Treasurer and Investor Relations
Huttig Building Products Inc.
– 3/31/16: Appointed Oscar A. Martinez as Chief Financial Officer
Interface Inc.
– 1/13/16: Appointed Jay D. Gould as President and Chief Operating Officer
– 11/19/15: Announced the retirement of John R. Wells as Senior Vice President
Jeld-Wen, Inc.
– 11/16/15: Appointed Mark A. Beck as President and Chief Executive Officer
Lighting Science Group Corporation
– 4/1/16: Appointed Mark D. Gorton as Executive Vice President and Chief Financial Officer
Masonite International Corporation
– 12/22/15: Announced the approval of Masonite (Africa) Limited commencing voluntary business rescue proceedings under
South African debtor relief laws
Nortek, Inc.
– 2/23/16: Appointed Michael J. Clarke, President and Chief Executive Officer as Interim Chief Financial Officer
NCI Building Systems, Inc.
– 1/8/16: Announced the promotion of Don Riley as President
Patrick Industries, Inc.
– 12/10/15: Announced the appointment of Andy L. Nemeth as Executive Vice President of Finance and Chief Financial Officer
and Joshua A. Boone as Director of Corporate Finance
PGT, Inc.
– 12/7/15: Announced the appointment of Danielle Mikesell as Vice President of Marketing, R&D and Customer Service
ProVia
– 1/4/16: Announced that all corporate entities and products will be aligned under unified ProVia brand
– 12/7/15: Announced the retirement of founder Bill Mullet and appointed him as Chairman of the Board
Source: Company websites
Building Products: Key company news (continued)
9
Quanex Building Products Corporation
– 1/25/16: Announced the appointment of Scott Zuehlke as Vice President, Investor Relations and Treasurer
Revolution Lighting Technologies, Inc.
– 12/22/15: Announced that it has received notification from the NASDAQ stock market’s listing qualifications department that
for the last 30 consecutive business days the Company’s bid price has closed below the minimum $1.00 per share required
for continued inclusion under NASDAQ Listing Rule 5550(a)(2)
Sealed Air Corporation
– 2/22/16: Appointed Edwina Payne as Vice President and Chief Information Officer
Tecnoglass Inc.
– 12/22/15: Announced listing of secondary shares on Colombia Stock Exchange
Thor Industries, Inc.
– 3/21/16: Announced the expansion of production capacity at its Thor Motor Coach subsidiary with purchase of a 128,000-
square-foot production facility
– 2/5/16: Appointed Matt Zimmerman as Chief Executive Officer of Keystone, Ryan Juday as President of CrossRoads RV,
Jeff Runels as President of Keystone RV Company and Troy James as President of Dutchmen
– 1/25/16: Announced the resignation of Andy Cripe as President of the Company’s CrossRoads subsidiary
Watsco Inc.
– 1/22/2016: Appointed Aaron J. Nahmad as President of the Company
Westlake Chemical Corporation:
– 2/16/16: Announced that it has nominated ten independent directors to Axiall’s Board for 2016 Annual Meeting
Winnebago Industries, Inc.
– 12/21/15: Appointed Michael J. Happe as President and CEO and a member of Board of Directors
– 12/1/15: Announced to expand its facilities through purchase of motorhome production facilities and equipment in Junction
City, Oregon
Winsupply Inc.
– 1/29/16: Appointed Roland Gordon as President of the Company
Source: Company websites
Building Products: Key company news (continued)
10
Source: SEC filings
Building Products: Operating performance (continued)
$ in millions, except per share data Most Recent Quarter Prior Year Quarter Year-over-Year Change
Company Sales EBITDA Margin Sales EBITDA Margin Sales EBITDA
METAL STRUCTURES
NCI Building Systems Inc. $370 $29 7.9% $323 $20 6.1% 14.6% 48.4%
Gibraltar Industries, Inc. 282 17 6.1% 202 11 5.2% 39.7% 64.8%
Insteel Industries Inc. 92 13 13.9% 111 9 8.1% (16.5%) 42.2%
Associated Materials, LLC - Metal Products 34 NA NA 40 NA NA (14.0%) NA
Total $779 $59 7.6% $676 $39 5.8% 15.3% 51.4%
PAINT
The Sherwin-Williams Company $2,605 $367 14.1% $2,569 $233 9.0% 1.4% 57.7%
Masco Corporation - Decorative Architectural Products 420 89 21.2% 438 84 19.2% (4.1%) 6.0%
The Valspar Corporation - Paints 291 12 4.0% 363 36 9.9% (19.7%) (67.2%)
Total $3,316 $467 14.1% $3,370 $352 10.5% (1.6%) 32.7%
PLUMBING
Masco Corporation - Plumbing Products $846 $147 17.4% $804 $133 16.5% 5.2% 10.5%
Fortune Brands Home & Security, Inc. - Plumbing & Accessories 359 76 21.1% 335 64 19.0% 7.0% 19.2%
Advanced Drainage Systems, Inc. 207 16 7.9% 181 16 9.1% 14.0% (1.1%)
Total $1,411 $239 16.9% $1,320 $213 16.1% 6.9% 12.2%
RECREATIONAL VEHICLES / MANUFACTURED HOUSING
Thor Industries Inc. $975 $87 8.9% $852 $51 6.0% 14.4% 69.9%
Drew Industries Incorporated 334 37 11.1% 289 26 9.1% 15.5% 40.7%
Patrick Industries Inc. 249 23 9.3% 190 14 7.4% 31.2% 65.7%
Winnebago Industries, Inc. 226 15 6.6% 235 13 5.5% (3.8%) 14.6%
Cavco Industries, Inc. 181 14 7.5% 147 11 7.3% 23.5% 27.1%
Skyline Corp. 59 2 3.1% 50 1 1.0% 18.2% 260.0%
Total $2,024 $178 8.8% $1,762 $116 6.6% 14.8% 53.4%
ROOFING
Carlisle Companies Incorporated - Construction Materials $484 $95 19.7% $463 $67 14.6% 4.4% 41.5%
Owens Corning - Building Materials (Roofing) 368 63 17.1% 340 41 12.1% 8.2% 53.7%
Total $852 $158 18.6% $803 $108 13.5% 6.0% 46.1%
SIDING & DECKING
Headwaters Incorporated $218 $40 18.4% $200 $34 16.9% 9.4% 18.9%
Ply Gem Holdings, Inc - Siding, Fencing, and Stone 190 35 18.5% 192 30 15.7% (1.1%) 16.3%
Axiall Corporation - Building Products 190 17 8.8% 202 9 4.4% (6.0%) 85.6%
Trex Co. Inc. 89 17 18.7% 74 13 17.7% 20.2% 27.5%
Associated Materials, LLC - Vinyl Siding Products 47 NA NA 54 NA NA (11.7%) NA
Advanced Environmental Recycling Technologies, Inc. 17 2 11.1% 14 0 0.0% 22.1% NA
Total $752 $111 14.7% $736 $86 11.7% 2.2% 28.5%
TOOLS
Stanley Black & Decker, Inc. - Tools & Storage $1,831 $343 18.7% $1,880 $339 18.1% (2.6%) 1.0%
Griffon Corporation - Ames True Temper 118 NA NA 133 NA NA (11.1%) NA
Q.E.P. Co., Inc. 77 3 3.4% 75 2 3.2% 3.9% 10.8%
The L.S. Starrett Company 54 3 5.6% 64 6 9.4% (15.9%) (50.0%)
P&F Industries Inc. 18 1 8.1% 18 2 9.2% (1.5%) (12.9%)
Total $2,098 $350 16.7% $2,169 $349 16.1% (3.3%) 0.1%
WINDOWS & DOORS
JELD-WEN, inc. $888 NA NA $893 NA NA (0.6%) NA
Masonite International Corporation 485 57 11.7% 449 38 8.4% 8.1% 50.7%
Ply Gem Holdings, Inc - Windows and Doors 240 14 5.9% 258 (2) (0.8%) (6.8%) NM
Masco Corporation - Other Specialty Products 195 12 6.2% 181 12 6.6% 7.7% 0.0%
Quanex Building Products Corporation - Engineered Components 154 17 10.8% 129 6 4.4% 19.5% 191.8%
Griffon Corporation - Clopay Building Products 143 NA NA 139 NA NA 3.1% NA
Fortune Brands Home & Security, Inc. - Windows and Doors 115 17 15.0% 109 11 10.4% 4.7% 51.0%
Associated Materials, LLC - Vinyl Windows 105 NA NA 112 NA NA (6.4%) NA
PGT, Inc. 93 14 15.5% 85 12 14.3% 9.8% 19.0%
Total $2,418 $131 5.4% $2,354 $77 3.3% 2.7% 70.5%
WOOD PRODUCTS
Weyerhaeuser Co. - Wood Products $922 $75 8.1% $947 $86 9.1% (2.6%) (12.8%)
Louisiana-Pacific Corp. 463 34 7.3% 454 (17) (3.7%) 2.1% NM
Boise Cascade Company - Wood Products 292 9 3.0% 317 34 10.8% (7.8%) (74.2%)
Simpson Manufacturing Co., Inc. 185 28 15.0% 167 21 12.7% 10.9% 30.8%
Total $1,862 $145 7.8% $1,884 $125 6.6% (1.2%) 16.6%
11
Source: SEC filings
Building Products: Operating performance $ in millions, except per share data Most Recent Quarter Prior Year Quarter Year-over-Year Change
Company Sales EBITDA Margin Sales EBITDA Margin Sales EBITDA
CABINETRY
Fortune Brands Home & Security, Inc. - Kitchen and Bath Cabinetry $608 $71 11.7% $456 $45 9.9% 33.3% 56.6%
Masco Corporation - Cabinets & Related Products 254 25 9.8% 243 0 0.0% 4.5% NA
Quanex Building Products Corporation - Cabinet Components 49 13 26.2% NA NA NA NA NA
American Woodmark Corp. 219 23 10.4% 189 15 7.7% 15.7% 55.5%
Total $1,129 $131 11.6% $888 $60 6.7% 27.2% 119.3%
DISTRIBUTION / INSTALLATION
HD Supply Holdings, Inc. $1,648 $167 10.1% $1,543 $155 10.0% 6.8% 7.7%
Builders FirstSource, Inc. 1,456 76 5.2% 1,481 67 4.5% (1.7%) 13.7%
Beacon Roofing Supply, Inc. 976 73 7.5% 596 34 5.8% 63.8% 113.2%
Watsco Inc. 904 59 6.5% 877 57 6.5% 3.1% 3.3%
BMC Stock Holdings, Inc. 728 38 5.2% 629 29 4.5% 15.7% 32.7%
Boise Cascade Company - Building Materials Distribution 707 18 2.6% 669 13 1.9% 5.7% 41.0%
Universal Forest Products Inc. 654 41 6.3% 620 25 4.0% 5.4% 65.6%
Bluelinx Holdings Inc. 428 4 1.0% 454 2 0.4% (5.7%) 121.0%
TopBuild Corp. 426 46 10.8% 398 20 5.1% 7.1% 126.1%
Pool Corp. 415 12 2.9% 376 5 1.4% 10.3% 138.2%
Installed Building Products, Inc. 191 23 12.3% 145 15 10.5% 31.8% 54.1%
The Hillman Companies, Inc. 179 23 13.0% 181 32 17.4% (1.0%) (26.0%)
Huttig Building Products Inc. 155 3 1.8% 145 1 1.0% 7.0% 100.0%
Associated Materials, LLC - Third Party Manufactured Products 72 NA NA 78 NA NA (7.5%) NA
CCOM Group, Inc. 22 1 2.9% 21 1 2.9% 4.6% 3.1%
Jewett-Cameron Trading Company Ltd. 12 1 8.0% 8 1 7.5% 49.6% 60.4%
Total $8,975 $587 6.5% $8,223 $457 5.6% 9.1% 28.4%
FLOORING
Mohawk Industries Inc. $1,998 $371 18.6% $1,951 $318 16.3% 2.4% 16.4%
Armstrong World Industries, Inc. 577 76 13.2% 587 81 13.8% (1.7%) (6.2%)
Interface Inc. 247 35 14.3% 272 37 13.7% (9.4%) (5.1%)
The Dixie Group, Inc. 108 5 4.7% 105 3 2.7% 3.0% 82.1%
Total $2,930 $487 16.6% $2,915 $439 15.1% 0.5% 10.9%
GLASS
PPG Industries, Inc. - Glass $265 $51 19.3% $272 $46 17.0% (2.6%) 10.8%
Apogee Enterprises, Inc. 238 36 15.0% 244 28 11.6% (2.5%) 25.7%
Tecnoglass Inc. 66 13 19.8% 44 13 29.0% 50.2% 2.8%
Total $570 $100 17.6% $561 $87 15.6% 1.6% 14.5%
HVAC
United Technologies Corporation - Climate, Controls & Security $4,122 $700 17.0% $4,192 $710 16.9% (1.7%) (1.4%)
Ingersoll-Rand Plc - Climate Solutions 3,326 472 14.2% 3,241 431 13.3% 2.6% 9.7%
Lennox International, Inc. 834 67 8.0% 813 63 7.7% 2.6% 6.4%
AO Smith Corp. 639 123 19.3% 627 89 14.2% 2.0% 38.4%
Nortek Inc. 631 68 10.7% 637 71 11.2% (0.9%) (5.2%)
AAON Inc. 97 24 24.3% 85 20 24.1% 14.8% 15.8%
Burnham Holdings, Inc. 62 9 14.7% 70 9 13.2% (12.2%) (2.2%)
Continental Materials Corp. 35 3 8.5% 33 (2) (7.2%) 5.4% NM
Total $9,746 $1,466 15.0% $9,697 $1,391 14.3% 0.5% 5.4%
INSULATION
Owens Corning - Building Materials (Insulation) $518 $96 18.5% $490 $71 14.5% 5.7% 35.2%
LaPolla Industries, Inc. 21 2 7.5% 19 (1) (3.1%) 10.3% NM
Total $539 $98 18.1% $509 $70 13.8% 5.9% 38.6%
LIGHTING
Hubbell Inc. $830 $140 16.9% $849 $142 16.7% (2.3%) (1.3%)
Acuity Brands, Inc. 737 140 19.0% 647 115 17.8% 13.8% 21.9%
Cree, Inc. 436 71 16.2% 413 73 17.7% 5.5% (3.2%)
LSI Industries Inc. 85 7 8.5% 85 5 5.4% (0.0%) 56.0%
Revolution Lighting Technologies, Inc. 44 4 10.1% 27 1 3.5% 61.6% 371.8%
Lighting Science Group Corporation 20 1 3.7% 23 (15) (66.7%) (15.2%) NM
Orion Energy Systems, Inc 26 (4) (14.0%) 17 (1) (5.1%) 56.0% NM
Energy Focus, Inc. 17 2 9.3% 9 0 0.0% 95.0% NA
Total $2,194 $362 16.5% $2,070 $319 15.4% 6.0% 13.2%
LOCKS & SECURITY
Allegion Plc $545 $118 21.6% $574 $118 20.5% (4.9%) 0.3%
Stanley Black & Decker, Inc. - Security 538 101 18.8% 590 102 17.2% (8.8%) (0.6%)
Spectrum Brands Holdings, Inc. - Hardware & Home Improvement 283 51 17.9% 271 49 18.1% 4.2% 3.3%
Fortune Brands Home & Security, Inc. - Security & Storage 144 22 15.0% 139 18 13.1% 3.3% 18.1%
Total $1,510 $291 19.3% $1,574 $287 18.2% (4.1%) 1.6%
12
Close Date Target (Seller) Acquirer Valuation Highlights
3/31/16 U.S. LBM Holdings LLC, American Lumber Corp Not Disclosed American Lumber Corp, also known as ALCO Doors, manufactures interior and
exterior doors for commercial and residential use
The acquisition will enable U.S. LBM Holdings to increase its presence in the
Northeast
3/19/16[1] The Valspar Corporation The Sherwin-Williams
Company
$11,300.0 million
EV
2.7x Revenue
16.3x EBITDA
The Valspar Corporation develops, manufactures and distributes a range of
coatings, paints and other related products worldwide
The acquisition will enable The Sherwin-Williams Company to expand its brand
portfolio, customer base and presence in global paints and coating market
3/17/16 [1] Window Coverings
Business of Newell
Rubbermaid Inc. incl.
Levolor® and Kirsch®
Hunter Douglas N.V. $270.0 million
0.9x Revenue
These brands are leaders in the everyday style market segment and are some of the
oldest and most recognized window coverings in North America
The acquisition will enable Hunter Douglas N.V. to expand its brand portfolio and
increase its strong presence in the premium custom window coverings segment
3/7/16[1] Service Experts LLC
(American Capital, Ltd.)
EnerCare Solutions Inc. $340.8 million EV
Service Experts LLC sells, repairs and installs heating, ventilation, and air
conditioning equipment for home and commercial applications in North America
The acquisition will enable EnerCare Solutions Inc.to expand its product portfolio and
consolidate its position in North America’s home service industry
3/7/16 3i Supply Company Distribution
International, Inc.
Not Disclosed 3i Supply Company distributes industrial and commercial insulation products
The acquisition will enable Distribution International, Inc. to expand its fabrication
capabilities and increase its customer base in Michigan
3/3/16 SEAL-KRETE
(Clayton Corporation)
RPM International Not Disclosed SEAL-KRETE manufactures concrete care coatings and sealants
The acquisition will enable Rust-Oleum Corporation to expand its concrete care
product offering and increase its distribution network in Missouri
3/3/16 Wrench Group Inc. Investcorp Bank B.S.C. Not Disclosed Wrench Group Inc. provides essential home maintenance and repair services,
including heating, ventilation and air conditioning, plumbing and electrical services
The acquisition will enable Investcorp to expand into attractive end markets
3/3/16 The Progressive Group Patrick Industries, Inc. $11 million EV
0.5x Revenue
The Progressive Group distributes mobile and home electronic products
The acquisition will enable Patrick Industries, Inc. to capitalize on its existing Quest
Audio Video electronics platform and nationwide geographic footprint to expand its
presence in the electronics distribution market
3/2/16 VFG Group Trulite Glass &
Aluminum Solutions
Not Disclosed VFG Group fabricates architectural, industrial, commercial and custom applications
The acquisition will enable Trulite Glass & Aluminum Solutions to increase its
presence in the Canadian market
2/29/16 Solar Division of Tecta
America Corp.
Onyx Renewable
Partners
Not Disclosed Tecta America Corp. offers services in the areas of new construction, roofing,
repairs, planned maintenance, disaster response and environmental solutions
The acquisition will enable Onyx Renewable Partners to increases its solar and
roofing solution capabilities
2/29/16 Flair Interiors, Inc. Drew Industries $8.1 million EV Flair Interiors, Inc. manufactures and supplies interior parts for recreational vehicles
The acquisition will enable Lippert Components, Inc. to expand its manufacturing
capabilities and increase its customer base in the United States
2/29/16 Parkland Plastics, Inc. Patrick Industries, Inc. $25 million EV
0.8x EBITDA
Parkland Plastics, Inc. manufactures recycled polymer-based architectural panels
The acquisition will enable Patrick Industries, Inc. to expand its product portfolio and
increase its customer base in architectural, industrial and other markets
2/29/16 Kern Door Company Inc. Installed Building
Products, Inc.
Not Disclosed Kern Door Company Inc. installs garage door systems to commercial and residential
customers
The acquisition will enable Installed Building Products, Inc. to expand its door
installation capabilities and product portfolio
2/25/16[1] Window and Door Profiles
Business of Royal Group,
Inc.
(Axiall Corporation)
OpenGate Capital, LLC Not Disclosed
Royal Group, Inc. designs, manufactures and distributes building materials for the
home remodeling, building, and municipal construction markets
The acquisition will enable OpenGate Capital, LLC to increase its scope of activities
in the building product s sector
2/24/16[1] InterWrap, Inc.
(Quad-C Management, Inc.)
Owens Corning $450 million EV
1.8x Revenue
InterWrap, Inc. manufactures coated woven packaging products and multi-layer
laminated reinforced plastic substrates
The acquisition will enable Owens Corning to expand into new applications and
increase its position in the roofing components segment
2/18/16 Roof Systems of Maine Tecta America Not Disclosed Roof Systems of Maine, Inc. provides commercial and industrial roofing services in
Maine and New Hampshire
The acquisition will enable Tecta America to expand its scope of activities in the
building products industry
2/16/16 WinDoor Incorporated and
LTE, LLC
PGT Industries, Inc. $102.0 million EV WinDoor Incorporated and LTE, LLC manufactures extruded aluminum and vinyl
sliding glass doors and window systems
The acquisition will enable PGT Industries, Inc. to expand its product portfolio and
manufacturing capabilities across the United States
Source: Company filings; Capital IQ
[1] Announcement Date
Building Products: Recent M&A activity
Close Date Target (Seller) Acquirer Valuation Highlights
2/15/16 True Textiles, Inc.
(LBC Credit Partners, Inc.,
Sun Capital Partners and
Thomas H. Lee Partners)
Duvaltex Inc. Not Disclosed True Textiles, Inc. designs, manufactures and sells commercial textiles for
corporate, healthcare, education, and hospitality markets in North America
The acquisition will enable Duvaltex Inc. to expand its capabilities in commercial or
contract interior fabrics in the United States and Canada
2/12/16 Nationwide Industries Inc.
(P&F Industries Inc. )
Argosy Capital $22.2 million EV Nationwide Industries Inc. designs and manufactures hardware products and
components for the building materials industry
The acquisition will enable Argosy Capital to expand it investment portfolio in building
products industry
2/9/16 Nut & Bolt Products Inc.
(Frieda Woronowski and
Douglas Garis)
H&S Sales, Inc. Not Disclosed Nut & Bolt Products, Inc. distributes various fasteners
The acquisition will enable H&S Sales, Inc. to expand its geographic presence in
Western New York
2/8/16 Metro Roof Products,
Enviroshake and Steel Rock
Roof Products
Headwaters Roofing
Group
Not Disclosed The three companies in California and Ontario manufacture high-end, specialty-niche
roofing
The acquisition will enable Headwaters Roofing Group to expand its strong presence
in the roofing industry
2/3/16[1] Rona Inc. Lowe's Companies
Canada, ULC
$2,188.4 million
0.7x Revenue
14.1x EBITDA
Rona Inc. engages in the distribution and retail of hardware, building materials and
home renovation products in Canada
The acquisition will enable Lowe's Companies Canada, ULC to increase its strong
presence and create a leading home improvement retailer in the Canadian market
2/2/16 Marshall Insulation, LLC Installed Building
Products, Inc.
Not Disclosed Marshall Insulation, LLC provides home insulation contracting services to residential
and commercial clients in Phoenix
The acquisition will enable Installed Building Products, Inc. to expand its customer
base in Arizona
2/2/16 Cascade Windows, Inc.
(Altamont Capital Partners)
CenterOak Partners LLC Not Disclosed Cascade Windows, Inc. designs, manufactures and sells vinyl windows and sliding
glass doors for homeowners, builders and architects in the Western United States
The acquisition will enable CenterOak Partners LLC to expand its investments in
Residential and commercial markets
2/2/16 Robert N. Karpp Company,
Inc.
GMS Inc. Not Disclosed Robert N. Karpp Company, Inc. supplies drywall specialty products
The acquisition will enable GMS Inc. to expand its geographic footprint
2/1/16 Parker's Building Supply US LBM Holdings, LLC Not Disclosed Parker Building Supplies, is an independent Timber and Heavyside Builders'
Merchant based in the Southeast, supplying both the retail and trade sectors
The acquisition will enable US LBM Holdings, LLC to expand its product portfolio and
increase its geographical footprint
1/27/16 Wolf-Gordon, Inc.
(Corinthian Capital Group,
LLC)
Saw Mill Capital LLC Not Disclosed Wolf-Gordon, Inc. provides interiors for commercial markets
The acquisition will enable Saw Mill Capital LLC to expand its investments in the
commercial market
1/27/16 Highwater Marine Furniture
Division, Bennington
Marine, LLC
Lippert Components,
Inc. (Drew Industries)
$10.0 million EV
0.5x Revenue
Division of Bennington Marine manufactures various pontoon furniture
The acquisition will enable Lippert Components, Inc. to expand its marine furniture
capacity by adding the Highwater manufacturing facility in Elkhart
1/25/16 Key Green Builder
Services, LLC
Installed Building
Products, Inc.
Not Disclosed Key Green Builder Services, LLC, provides insulation installation services to
customers in Central and South Texas
The acquisition will enable Installed Building Products, Inc. to expand its strong
presence and increase the market share in Central and South Texas
1/25/16 Icopal a/s GAF Corporation €1.0 billion Icopal is a leader in modified bitumen membranes and has a significant and growing
presence in single-ply and liquid roofing products
The acquisition will enable GAF to leverage best practices and technologies on both
sides of the Atlantic
1/21/16 Building & Wind Business
Unit of Ahlstrom Oyj
Owens Corning $79.5 million EV Ahlstrom Oyj develops, manufactures and markets fiber-based materials worldwide
The acquisition will enable Owens Corning to provide technology, talent and broad
access to markets
1/14/16 Atlas Trillo Heating & Air
Conditioning Inc.
American Residential
Services LLC
Not Disclosed Atlas Trillo Heating & Air Conditioning Inc. offers HVAC, plumbing, refrigeration, duct
cleaning, replacement and design, preventative maintenance contracts and repair
services
The acquisition will enable American Residential Services LLC to expand its
geographic footprint in California
1/13/16 HeathCo LLC
(The Chamberlain Group,
Inc.)
Transom Capital Group Not Disclosed HeathCo LLC manufactures and markets electrical products, door chimes, motion
activated lighting and lighting controls for retail sale
The acquisition will enable Transom Capital Group to expand its investment portfolio
in electronic components and equipment industry
13
Source: Company filings; Capital IQ
[1] Announcement Date
Building Products: Recent M&A activity (continued)
Close Date Target (Seller) Acquirer Valuation Highlights
1/12/16 R.F. Supply, Inc. Trulite Glass &
Aluminum Solutions,
LLC
Not Disclosed R.F. Supply, Inc. distributes fabricated and flat glass products
The acquisition will enable to Trulite Glass & Aluminum Solutions, LLC to meet the
rapidly increasing demand for quality fabricated products
1/12/16 Aspen Air Conditioning Inc. American Residential
Services LLC
Not Disclosed Aspen Air Conditioning Inc. engages in installation and maintenance of air
conditioners
The acquisition will enable American Residential Services LLC to expand its strong
presence in Florida market
1/7/16 Darby Doors, Inc. US LBM Holdings, LLC Not Disclosed Darby Doors, Inc. manufactures and sells doors, millwork, hardware and building
specialties
The acquisition will enable US LBM Holdings, LLC to expand its capabilities and
customer base
1/7/16 Paradigm Window
Solutions
CapitalWorks LLC Not Disclosed Paradigm Window Solutions manufactures premium-quality and Energy Star-rated
vinyl windows and patio doors
The acquisition will enable CapitalWorks LLC to increase its portfolio of companies in
the building products segment
1/6/16 SunSetter Products, LP Springs Window
Fashions LLC
Not Disclosed SunSetter Products, LP manufactures deck and patio awnings in America
The acquisition will allow Springs Window Fashions LLC to expand its product
portfolio and geographic presence in America
1/5/16[1] Blue Heron Enterprises,
LLC and Fox Chase
Enterprises, LLC
Simpson Strong-Tie
Company Inc.
Not Disclosed Blue Heron Enterprises, LLC manufactures EB-TY (R) hidden deck fastening system
Fox Chase Enterprises, LLC manufactures Lumber Loc (R) hidden deck fastening
system based in the United States
The transaction will enable Simpson Strong-Tie Company Inc. to expand its product
portfolio and services
1/5/16 Gypsum Supply Co., Inc. GMS Inc. Not Disclosed Gypsum Supply Co., Inc. supplies drywall and plaster products to building
contractors
The acquisition will enable GMS Inc. to enhance its presence in Michigan and
Northwest Ohio market
1/4/16 Construction Resources,
Inc. and Builder Specialties,
Inc.
Monomoy Capital
Partners
Not Disclosed Construction Resources, Inc. and Builder Specialties, Inc. distribute building products
for home builders in the Southeast
The acquisition will enable Monomoy Capital Partners to increase its portfolio of
companies in the building products segment
12/31/15 Westview Products, Inc. Sierra Pacific Windows,
Inc.
Not Disclosed Westview Products, Inc. develops sunrooms, window walls, monumental skylights
and curtain walls for both residential and commercial projects
The acquisition will enable Sierra Pacific Windows, Inc. to expand its product
portfolio
12/31/15 JC Licht, LLC (Benjamin
Moore)
Private Investors incl.
Elliot Greenberg
Not Disclosed JC Licht, LLC offers interior and exterior paints, primers, interior stains and finishes
The acquisition will give the company the management and upgrades to make
significant improvements to current procedure
12/30/15 Rooftek Roofing Supplies ABC Supply Co., Inc. Not Disclosed Rooftek Roofing Supplies, Inc. supplies floors and roofing products
The transaction will enable ABC Supply Co., Inc. to expand its product portfolio and
services
12/29/15 Statewide Wholesale, Inc. Beacon Roofing Supply,
Inc.
Not Disclosed Statewide Wholesale, Inc. distributes roofing material and supplies
The transaction will enable Beacon Roofing Supply, Inc. to expand its product
portfolio and geographic presence in Denver, CO
12/28/15 Seifer Kitchen Design
Center of Pine Brook
US LBM Holdings, LLC Not Disclosed Seifer Kitchen Design Center of Pine Brook provides a wide range of cabinetry and
countertop products and services
The transaction will enable Direct Cabinet Sales, Inc. to expand its product portfolio
and services
12/23/15 Nexgen Inc. US LBM Holdings, LLC Not Disclosed Nexgen Inc. engages in the supply of roof & floor trusses, hangers and accessories,
wall panels, hardware, paint, power tools, cabinetry, lumber and lawn and garden
tools
The transaction will enable US LBM Holdings, LLC to expand its product portfolio
and services in the Upper Midwest
12/22/15[1] Trend Windows & Doors
Pty Ltd.
JELD-WEN, Inc. Not Disclosed Trend Windows & Doors Pty Ltd. manufactures and markets aluminum, timber, and
thermal energy efficient windows and doors in Australia
The acquisition will enable JELD-WEN, Inc. to expand its geographical footprint in
Australia
14
Source: Company filings; Capital IQ
[1] Announcement Date
Building Products: Recent M&A activity (continued)
15
Source: Company filings; Capital IQ
[1] Announcement Date
Close Date Target (Seller) Acquirer Valuation Highlights
12/21/15[1] Engineered Lumber
Business, Georgia-Pacific
LLC
Boise Cascade
Company
$215 million EV
5.4x EBITDA
Georgia-Pacific LLC engineered lumber production facilities at Thorsby, AL and Roxboro,
NC comprises lumber production mills
The acquisition will enable Boise Cascade Wood Products, LLC to expand its engineered
wood products business which expects to increase $40 million of EBITDA mid-cycle
12/21/15 NPI Holding Corp Grupo Verzatec Not Disclosed NPI Holding Corp provides innovative interior panel solutions for commercial markets
The acquisition will enable Grupo Verzatec to provide an unparalleled offering to their
customers
12/18/15 Roofing & Insulation
Supply
Beacon Roofing
Supply, Inc.
Not Disclosed Roofing & Insulation Supply, Inc. operates as a wholesale distributor of roofing,
insulation, sheathing and related materials
The acquisition will enable Beacon Roofing Supply, Inc. to expand its geographical
footprint in the Western United States
12/15/15 All-American Scaffold
LLC
Safway Group Holding
LLC
Not Disclosed All-American Scaffold LLC provides scaffolding and shoring products and related
equipment for commercial or residential new construction or remodeling jobs
The acquisition will help Safway Group Holding LLC to increase its comprehensive
coverage in Iowa and throughout the central region
12/15/15 Arrow Storage Products
Inc.
ShelterLogic Corp. Not Disclosed Arrow Storage Products Inc. is engaged in the design, manufacturing and marketing of
DIY outdoor steel storage solutions
The acquisition will help ShelterLogic Corp. to expand its product portfolio and
capabilities in the sheltering and storage category
12/9/15 CMA Supply Co., Inc.
(Matrix Capital markets
Group, Inc.)
Carter-Waters LLC Not Disclosed CMA Supply Co., Inc. is a supplier of concrete and masonry accessories in the United
States
The acquisition will help Carter-Waters LLC to increase its geographical footprint in the
Missouri, Kansas and Illinois
12/8/15 BioFoam of North
Carolina, LLC
Installed Building
Products, Inc.
Not Disclosed BioFoam of North Carolina, LLC, doing business as Prime Energy Group, installs spray
foam insulation for residential and commercial customers
The acquisition will enable Installed Building Products, Inc. to expand its presence in the
strong North Carolina housing market
12/7/15 JW Millwork, LLC Cedar Creek
Wholesale, Inc.
Not Disclosed JW Millwork, LLC operates a molding and millwork reload distribution center in the United
States
The acquisition will enable Cedar Creek Wholesale, Inc. to expands its product offerings
in operating region of the United States
12/1/15 Badgerland Supply, Inc. GMS Inc. Not Disclosed Badgerland Supply, Inc. supplies building materials to Wisconsin and Northern Illinois
The acquisition will enable GMS Inc. to increase its portfolio of brands and geographical
footprint in Wisconsin
12/1/15 Elite Door & Trim, Inc. National Millwork Inc. Not Disclosed Elite Door & Trim, Inc. manufactures doors, hardware and trim products
The acquisition will help National Millwork Inc. to expand its manufacturing capabilities in
by 2016
12/1/15 Premier Envelope Ltd. Supremex Inc. Not Disclosed Premier Envelope Ltd. manufactures commercial, custom and specialty envelopes for
financial institutions, commercial printers, paper companies, and others
The acquisition will help Supremex Inc. to expand its manufacturing capabilities and
increase its customer base in Western Canada
12/1/15 RCI Roofing Supply
Company, Inc.
Beacon Roofing
Supply, Inc.
Not Disclosed RCI Roofing Supply Company, Inc. distributes building supplies and materials for
residential and commercial projects throughout the Midwest
The acquisition will help Beacon Roofing Supply, Inc. to increase its customer base
across Nebraska, Iowa and Colorado region
12/1/15 E.J. Bartells Distribution
International, Inc.
Not Disclosed E.J. Bartells, supplier of mechanical and industrial insulation, fabrication, refractory and
HVAC products throughout the Pacific Northwest & Western states
The acquisition will help Distribution International, Inc. to expand its product offering in
the Pacific Northwest and Western states of United States
11/19/15 THV Holdings LLC Soft-Lite LLC Not Disclosed THV Holdings offers composite windows, entry doors and storm doors
The acquisition will provide Soft-Lite with 100,000 square feet of additional manufacturing
space and the ability to expand their current product offering
11/17/15 M3 Glass Technologies LongWater
Opportunities LLC
Not Disclosed M3 Glass Technologies produces and sells custom fabricated and decorative glass
products for customers in the United States and internationally
The acquisition will enable LongWater Opportunities LLC to bolster the portfolio of
companies in the construction material segment
11/16/15 Action Fire Fab & Supply
Inc.
Ferguson Enterprises,
Inc.
Not Disclosed Action Fire Fab & Supply Inc. supplies fire protection solutions
The acquisition will enable Ferguson Fire & Fabrication, Inc. to expand its product
portfolio in the fire protection industry
Building Products: Recent M&A activity (continued)
16
Close Date Company Type Use of Proceeds
Amount
(MM) Maturity Coupon / Spread
4/1/16 Boise Cascade Company Term Loan Acquisition Purposes $75.0 Mar-26 L + 200
3/29/16 Binswanger Enterprises Mezzanine Capital NA NA NA NA
3/22/16 Griffon Corporation Revolving Credit Facility Debt Refinancing $350.0 Mar-21 L + 225
3/15/16 Ingersoll-Rand Global Holding
Company Limited Revolving Credit Facility
General Corporate
Purposes $1,000.0 Mar-21 L +1 25
3/10/16 Masco Corporation Senior Notes Debt Refinancing $500.0 Apr-26 4.375%
3/10/16 Masco Corporation Senior Notes Debt Refinancing $400.0 Apr-21 3.500%
3/4/16 Armstrong World Industries Term Loan B Debt Refinancing $250.0 Mar-23 L + 325
3/1/16 Mohawk Industries, Inc. Term Loan General Corporate
Purposes $200.0 Mar-19 L + 125
3/1/16 Installed Building Products, Inc. Senior Credit Facility Acquisition Purposes $325.0 Mar-21 L + 150-250
2/23/16 Hubbell Incorporated Senior Notes General Corporate
Purposes
$400.0 Mar-26 3.35%
2/19/16 Associated Materials, LLC First-lien Term Loan General Corporate
Purposes
$27.5 Jun-18 L + 425
2/1/16 Bluelinx Holdings Inc. Term Loan Debt Refinancing $159.8 Jul-19 6.35%
2/1/16 PGT, Inc. Term Loan B Debt Refinancing $270.0 Jan-22 L + 575
1/13/16 Trex Co. Inc. Revolving Credit Facility Debt Refinancing $250.0 Jan-21 NA
12/18/15 Stanley Black & Decker, Inc. Revolving Credit Facility Debt Refinancing $1,750.0 Dec-20 NA
12/21/15 Hubbell Incorporated Revolving Credit Facility General Corporate
Purposes
$1,250.0 Dec-21 NA
12/10/15 Mohawk Industries, Inc. A/R Securitization Facility Debt Refinancing $500.0 Dec-16 NA
12/10/15 Gibraltar Industries, Inc. Revolving Credit Facility Asset-based Revolver $300.0 Dec-20 L + 175
12/1/15 BMC Stock Holdings, Inc. Revolving Credit Facility Corporate Purposes $450 Dec-20 L + 125
11/24/15 US LBM Holdings, LLC First-lien Term Loan Debt Refinancing $40.0 Aug-22 L + 525
11/20/15 Pool Corporation Revolving Credit Facility Debt Refinancing $465.0 Nov-20 NA
11/19/15 ABC Supply Senior notes Debt Refinancing $350.0 Dec-23 5.75%
Source: Company filings; Capital IQ
Building Products: Recent debt transaction activity
Offer Date Company Type Gross Amount (MM) Shares Offered Offering Price
11/20/15 Builders FirstSource, Inc. Follow-On Equity Offering $92.8 7,000,000 $13.25
Building products: Recent equity markets activity
17
Source: SEC filings
Building Products: Public trading levels
$ in millions, except per share data March 31, 2016 LTM
Share Market Enterprise Adjusted EBITDA Net Debt / Enterprise Value / EBITDA Price / EPS
Company Price Cap Value Sales EBITDA Margin EBITDA LTM CY2016 CY2017 CY2016 CY2017
Manufacturing (Large Cap)
The Sherwin-Williams Company $284.67 $26,994 $28,751 $11,339 $1,813 16.0% 1.0x 15.9x 14.7x 13.5x 22.9x 20.4x
Ingersoll-Rand Plc $62.01 $16,054 $19,619 $13,301 $1,881 14.1% 1.9x 10.4x 10.2x 9.6x 15.9x 14.4x
Stanley Black & Decker, Inc. $105.21 $15,939 $19,399 $11,172 $1,787 16.0% 1.9x 10.9x 10.4x 9.8x 17.1x 15.4x
Mohawk Industries Inc. $190.90 $14,140 $17,287 $8,072 $1,469 18.2% 2.1x 11.8x 10.6x 9.9x 16.0x 14.8x
Masco Corporation $31.45 $10,643 $12,543 $7,142 $1,054 14.8% 1.6x 11.9x 10.7x 9.8x 21.3x 17.7x
Fortune Brands Home & Security, Inc. $56.04 $8,769 $9,706 $4,579 $649 14.2% 1.4x 15.0x 12.7x 11.3x 22.5x 19.3x
Acuity Brands, Inc. $218.14 $9,624 $9,416 $2,796 $458 16.4% (0.5x) 20.6x 15.7x 13.3x 27.9x 23.3x
Allegion Plc $63.71 $6,170 $7,521 $2,068 $446 21.5% 3.0x 16.9x 14.6x 13.4x 19.0x 16.9x
Owens Corning $47.28 $5,511 $7,326 $5,350 $841 15.7% 2.1x 8.7x 7.7x 7.1x 15.9x 13.6x
Lennox International, Inc. $135.19 $6,125 $6,830 $3,467 $440 12.7% 1.6x 15.5x 13.1x 12.0x 21.4x 18.7x
Carlisle Companies Incorporated $99.50 $6,473 $6,811 $3,543 $642 18.1% 0.5x 10.6x 9.9x 9.4x 18.5x 16.9x
AO Smith Corp. $76.31 $6,760 $6,363 $2,537 $462 18.2% (0.9x) 13.8x 12.4x 11.3x 21.7x 19.4x
Hubbell Inc. $105.93 $6,000 $6,297 $3,390 $594 17.5% 0.5x 10.6x 11.0x 10.2x 20.0x 18.1x
James Hardie Industries plc $12.56 $5,599 $6,028 $1,704 $420 24.6% 1.0x 14.4x 12.8x 11.2x 22.0x 18.4x
Median 16.2% 1.5x 12.8x 11.7x 10.7x 20.6x 17.9x
Mean 17.0% 1.2x 13.3x 11.9x 10.8x 20.2x 17.7x
Manufacturing (Mid Cap)
Armstrong World Industries, Inc. $48.37 $2,694 $3,463 $2,420 $391 16.2% 2.0x 8.9x 8.5x 7.7x 19.1x 16.0x
Cree, Inc. $29.10 $2,927 $2,515 $1,653 $134 8.1% (3.1x) 18.8x 8.6x 8.6x 24.5x 21.5x
Norbord, Inc. $19.93 $1,717 $2,483 $1,509 $116 7.7% 6.6x 21.4x 8.1x 5.3x 14.0x 7.9x
Masonite International Corporation $65.50 $2,039 $2,432 $1,872 $183 9.8% 2.1x 13.3x 9.8x 8.3x 23.3x 17.4x
Louisiana-Pacific Corp. $17.12 $2,454 $2,383 $1,893 $67 3.5% (1.1x) NM 9.7x 6.2x 36.2x 15.5x
Nortek Inc. $48.29 $792 $2,160 $2,526 $267 10.5% 5.1x 8.1x 7.5x 7.1x 14.3x 11.3x
Headwaters Incorporated $19.84 $1,512 $1,971 $914 $172 18.8% 2.6x 11.5x 9.8x 8.9x 14.7x 12.5x
Ply Gem Holdings, Inc $14.05 $958 $1,921 $1,840 $185 10.0% 5.2x 10.4x 8.3x 7.0x 11.0x 9.1x
Advanced Drainage Systems, Inc. $21.30 $1,127 $1,863 $1,178 $131 11.1% 3.0x 14.2x 7.5x 6.6x 17.1x 13.9x
Drew Industries Incorporated $64.46 $1,582 $1,620 $1,403 $164 11.7% 0.2x 9.9x 8.2x 7.5x 17.2x 15.9x
Simpson Manufacturing Co., Inc. $38.17 $1,848 $1,589 $794 $141 17.7% (1.8x) 11.3x 9.8x 8.8x 23.5x 20.2x
Griffon Corporation $15.45 $699 $1,549 $2,008 $171 8.5% 5.0x 9.0x 8.7x NA 17.4x NA
Trex Co. Inc. $47.93 $1,490 $1,491 $441 $92 20.9% 0.0x 16.2x 12.9x 11.4x 23.7x 20.6x
AAON Inc. $28.00 $1,502 $1,471 $359 $83 23.3% (0.4x) 17.6x 15.6x 13.9x 28.9x 25.2x
NCI Building Systems Inc. $14.20 $1,043 $1,403 $1,611 $140 8.7% 2.6x 10.1x 8.6x 7.3x 20.5x 15.3x
Interface Inc. $18.54 $1,222 $1,360 $1,002 $144 14.4% 1.0x 9.4x 8.3x 7.3x 15.1x 13.2x
Apogee Enterprises, Inc. $43.89 $1,288 $1,217 $966 $119 12.4% (0.6x) 10.2x 8.1x 6.8x 16.7x 13.7x
CaesarStone Sdot-Yam Ltd. $34.35 $1,211 $1,172 $500 $123 24.7% (0.4x) 9.5x 8.3x 7.2x 13.3x 11.2x
American Woodmark Corp. $74.59 $1,232 $1,070 $913 $101 11.0% (1.6x) 10.6x 8.9x NA 18.6x NA
Gibraltar Industries, Inc. $28.60 $901 $1,041 $1,041 $90 8.7% 1.6x 11.5x 9.1x 8.3x 21.6x 18.6x
Median 11.1% 1.3x 10.6x 8.6x 7.4x 18.0x 15.4x
Mean 12.9% 1.4x 12.2x 9.2x 8.0x 19.5x 15.5x
18
Source: SEC filings
Building Products: Public trading levels (continued)
$ in millions, except per share data March 31, 2016 LTM
Share Market Enterprise Adjusted EBITDA Net Debt / Enterprise Value / EBITDA Price / EPS
Company Price Cap Value Sales EBITDA Margin EBITDA LTM CY2016 CY2017 CY2016 CY2017
Manufacturing (Small Cap)
Boise Cascade Company $20.72 $803 $963 $3,633 $158 4.4% 1.0x 6.1x 6.7x 4.8x 21.6x 13.6x
Patrick Industries Inc. $45.39 $702 $906 $920 $87 9.4% 2.4x 10.4x 8.3x 7.8x 14.2x 12.6x
Quanex Building Products Corporation $17.36 $596 $889 $719 $73 10.2% 4.0x 12.1x 7.6x 6.6x 19.9x 13.9x
Cavco Industries, Inc. $93.46 $858 $819 $676 $44 6.5% (0.9x) 18.6x 13.8x NA 24.2x 19.5x
PGT, Inc. $9.84 $506 $764 $390 $67 17.3% 3.8x 11.4x 9.2x 7.3x 17.2x 12.5x
Insteel Industries Inc. $30.57 $583 $537 $429 $48 11.2% (1.0x) 11.2x 8.2x NA 16.9x NA
Tecnoglass Inc. $12.65 $340 $459 $239 $66 27.4% 1.8x 7.0x 5.4x NA 9.9x NA
LSI Industries Inc. $11.75 $298 $269 $315 $21 6.8% (1.3x) 12.6x 11.2x 9.3x 27.3x 21.0x
The Dixie Group, Inc. $4.21 $66 $196 $422 $20 4.6% 6.7x 10.0x NA NA 17.5x 10.5x
Median 9.4% 1.8x 11.2x 8.3x 7.3x 17.5x 13.6x
Mean 10.9% 1.8x 11.0x 8.8x 7.2x 18.7x 14.8x
Distribution / Installation
Wolseley plc $56.73 $14,608 $16,467 $19,710 $1,416 7.2% 1.3x 11.6x 10.4x 9.5x 14.9x 13.4x
HD Supply Holdings, Inc. $33.07 $6,714 $10,756 $7,388 $878 11.9% 4.6x 12.3x 11.1x 10.1x 13.1x 10.8x
Watsco Inc. $134.74 $4,007 $4,464 $4,113 $353 8.6% 0.6x 12.6x 11.8x 10.8x 24.5x 22.1x
Pool Corp. $87.74 $3,843 $4,162 $2,363 $242 10.2% 1.3x 17.2x 16.2x 14.6x 26.6x 23.4x
Beacon Roofing Supply, Inc. $41.01 $2,476 $3,564 $2,896 $178 6.1% 6.1x 20.1x 10.3x 9.5x 19.0x 15.6x
Builders FirstSource, Inc. $11.27 $1,267 $3,153 $6,067 $313 5.2% 6.0x 10.1x 7.6x 6.4x 13.2x 7.5x
Universal Forest Products Inc. $85.82 $1,738 $1,743 $2,887 $177 6.1% (0.0x) 9.9x 9.2x 8.7x 19.5x 18.2x
BMC Stock Holdings, Inc. $16.62 $1,089 $1,559 $2,702 $120 4.4% 3.9x 13.0x 8.6x 6.8x 21.0x 13.8x
TopBuild Corp. $29.74 $1,148 $1,229 $1,617 $96 5.9% 0.8x 12.8x 9.6x 7.8x 16.6x 13.1x
Installed Building Products, Inc. $26.61 $835 $972 $663 $71 10.7% 1.9x 13.7x 9.5x 7.8x 19.6x 15.0x
Bluelinx Holdings Inc. $0.61 $55 $452 $1,917 $25 1.3% NM 18.2x NA NA NA NA
CanWel Building Materials Group Ltd. $3.60 $153 $273 $636 $25 3.9% 4.9x 11.1x 8.6x 7.8x 10.2x 8.9x
Hardwoods Distribution Inc. $13.90 $233 $254 $441 $27 6.1% 0.8x 9.5x 8.3x 7.7x 13.7x 12.4x
Median 6.1% 1.6x 12.6x 9.5x 8.3x 17.8x 13.6x
Mean 6.7% 2.7x 13.2x 10.1x 9.0x 17.6x 14.5x
19
Source: SEC filings; Bloomberg
Note: Results as of the most recent trailing twelve month period; “/*+” indicates a rating under review for an upgrade
[1] Issued out of Black & Decker Holdings Inc
[2] Issued out of Hardwoods Acquisition Inc
[3] Issued out of RSI Home Products Inc
Building Products: Debt comparables
Ratings As of 3/31/2016
Issuer Moody's S&P Security Amount Maturity Coupon PriceYield to
Maturity
Spread to
MaturityG-Spread
Debt /
EBITDA
Net Debt
/ EBITDA
EBITDA /
Interest
Investment Grade
Acuity Brands Lighting Inc Baa2 BBB Senior Notes $350 12/15/2019 6.000% 110.75 2.91% +205 bp +192 bp 0.8x -0.5x 13.9x 12.0x
Carlisle Cos Inc Baa2 BBB Senior Notes $150 8/15/2016 6.125% 101.50 1.93% +138 bp +164 bp 1.2x 0.5x 18.3x 16.2x
Carlisle Cos Inc Baa2 BBB Senior Notes $250 12/15/2020 5.125% 108.50 3.06% +187 bp +194 bp
Carlisle Cos Inc Baa2 BBB Senior Notes $350 11/15/2022 3.750% 101.75 3.44% +224 bp +200 bp
Fortune Brands Home & Security Inc Baa3 BBB Senior Notes $400 6/15/2020 3.000% 100.88 2.77% +158 bp +171 bp 1.8x 1.4x NM 16.3x
Fortune Brands Home & Security Inc Baa3 BBB Senior Notes $500 6/15/2025 4.000% 101.38 3.82% +204 bp +212 bp
Hubbell Inc A3 A Senior Notes $300 6/1/2018 5.950% 108.63 1.85% +112 bp +110 bp 1.1x 0.5x 19.2x 16.7x
Hubbell Inc A3 A Senior Notes $300 11/15/2022 3.625% 104.25 2.91% +172 bp +143 bp
Hubbell Inc A3 A Senior Notes $400 3/1/2026 3.350% 99.50 3.41% +163 bp +163 bp
Ingersoll-Rand Global Holding Co Ltd Baa2 BBB Senior Notes $750 8/15/2018 6.875% 110.50 2.28% +155 bp +150 bp 2.3x 1.9x 10.9x 9.5x
Ingersoll-Rand Global Holding Co Ltd Baa2 BBB Senior Notes $350 1/15/2019 2.875% 102.13 2.08% +123 bp +125 bp
Ingersoll-Rand Global Holding Co Ltd Baa2 BBB Senior Notes $700 6/15/2023 4.250% 106.38 3.25% +147 bp +169 bp
Ingersoll-Rand Global Holding Co Ltd Baa2 BBB Senior Notes $500 6/15/2043 5.750% 119.56 4.50% +189 bp +200 bp
Lennox International Inc Baa3 BBB Senior Notes $200 5/15/2017 4.900% 103.38 1.82% +109 bp +121 bp 1.7x 1.6x 17.5x 14.7x
Masco Corp Ba2 BBB Senior Notes $114 4/15/2018 6.625% 106.13 3.47% +274 bp +274 bp 3.2x 1.6x 4.7x 4.0x
Masco Corp Ba2 BBB Senior Notes $500 3/15/2020 7.125% 115.00 3.06% +186 bp +203 bp
Masco Corp Ba2 BBB Senior Notes $400 4/1/2021 3.500% 100.88 3.31% +211 bp +211 bp
Masco Corp Ba2 BBB Senior Notes $400 3/15/2022 5.950% 109.88 4.06% +287 bp +269 bp
Masco Corp Ba2 BBB Senior Notes $500 4/1/2025 4.450% 102.38 4.12% +235 bp +244 bp
Masco Corp Ba2 BBB Senior Notes $500 4/1/2026 4.375% 101.50 4.19% +241 bp +242 bp
Masco Corp Ba2 BBB Senior Notes $296 8/1/2029 7.750% 113.38 6.25% +448 bp +433 bp
Masco Corp Ba2 BBB Senior Notes $300 8/15/2032 6.500% 102.00 6.30% +369 bp +425 bp
Mohawk Industries Inc Baa2 BBB Senior Notes $600 2/1/2023 3.850% 102.75 3.38% +160 bp +191 bp 2.2x 2.1x NM 13.6x
Owens Corning Ba1 BBB- Senior Notes $158 12/1/2016 6.500% 102.38 2.81% +226 bp +236 bp 2.2x 2.1x 8.4x 4.5x
Owens Corning Ba1 BBB- Senior Notes $144 6/15/2019 9.000% 115.13 3.91% +306 bp +301 bp
Owens Corning Ba1 BBB- Senior Notes $600 12/15/2022 4.200% 101.13 4.00% +280 bp +255 bp
Owens Corning Ba1 BBB- Senior Notes $400 12/1/2024 4.200% 99.25 4.30% +253 bp +263 bp
Owens Corning Ba1 BBB- Senior Notes $550 12/1/2036 7.000% 109.25 6.20% +359 bp +397 bp
Sherwin-Williams Co/The A3 /*- A /*- Senior Notes $700 12/15/2017 1.350% 99.75 1.50% +77 bp +82 bp 1.1x 1.0x NM NM
Sherwin-Williams Co/The A3 /*- A /*- Senior Notes $400 8/1/2025 3.450% 100.75 3.35% +158 bp +164 bp
Sherwin-Williams Co/The A3 /*- A /*- Senior Notes $140 2/1/2027 7.375% 129.00 4.04% +226 bp +222 bp
Sherwin-Williams Co/The A3 /*- A /*- Senior Notes $300 12/15/2042 4.000% 93.63 4.41% +180 bp +192 bp
Sherwin-Williams Co/The A3 /*- A /*- Senior Notes $400 8/1/2045 4.550% 99.75 4.57% +196 bp +197 bp
Stanley Black & Decker Inc Baa1 A Senior Notes $400 12/1/2021 3.400% 105.63 2.29% +109 bp +100 bp 2.2x 1.9x 9.9x 8.2x
Stanley Black & Decker Inc Baa1 A Senior Notes $800 11/1/2022 2.900% 100.75 2.77% +158 bp +130 bp
Stanley Black & Decker Inc [1] Baa1 A Senior Notes $150 7/1/2028 7.050% 134.75 3.53% +175 bp +165 bp
Stanley Black & Decker Inc Baa1 A Senior Notes $400 9/1/2040 5.200% 112.50 4.36% +175 bp +197 bp
Stanley Black & Decker Inc Baa2 BBB+ Subordinated Notes $400 12/15/2053 5.750% 105.63 3.54% +282 bp +272 bp
Valspar Corp/The Baa2 /*- BBB Senior Notes $150 5/1/2017 6.050% 104.00 2.25% +153 bp +165 bp 2.9x 2.7x 9.1x 7.7x
Valspar Corp/The Baa2 /*- BBB Senior Notes $300 6/15/2019 7.250% 113.88 2.69% +183 bp +178 bp
Valspar Corp/The Baa2 /*- BBB Senior Notes $400 1/15/2022 4.200% 104.75 3.25% +206 bp +195 bp
Valspar Corp/The Baa2 /*- BBB Senior Notes $250 2/1/2025 3.300% 98.25 3.53% +176 bp +184 bp
Valspar Corp/The Baa2 /*- BBB Senior Notes $350 1/15/2026 3.950% 103.00 3.58% +180 bp +183 bp
Valspar Corp/The Baa2 /*- BBB Senior Notes $250 2/1/2045 4.400% 93.50 4.82% +221 bp +225 bp
Ratings As of 3/31/2016
Issuer Moody's S&P Security Amount Maturity Coupon PriceYield to
Worst
Yield to
Worst Date
Spread to
Worst
Debt /
EBITDA
Net Debt
/ EBITDA
EBITDA /
Interest
American Builders & Contractors Supply B3 BB Senior Notes $500 4/15/2021 5.625% 103.00 4.55% 4/15/2019 +369 bp NA NA NA NA
American Builders & Contractors Supply B3 BB Senior Notes $350 12/15/2023 5.750% 104.00 4.93% 12/15/2021 +374 bp
Apex Tool Group LLC Caa1 B- Senior Notes $450 2/1/2021 7.000% 82.00 12.02% 2/1/2021 +1,082 bp NA NA NA NA
Associated Materials LLC Caa3 B- 1st Lien Notes $830 11/1/2017 9.125% 76.50 28.70% 11/1/2017 +2,797 bp 10.3x NM 1.1x 0.9x
Atrium Windows & Doors Inc Caa1 B- Secured Notes $305 5/1/2019 7.750% 75.00 18.82% 5/1/2019 +1,797 bp NA NA NA NA
Beacon Roofing Supply Inc B3 B+ Senior Notes $300 10/1/2023 6.375% 106.00 5.11% 10/1/2021 +391 bp NA NA NA NA
BMC Stock Holdings Inc Caa1 B+ 1st Lien Notes $250 9/15/2018 9.000% 103.50 6.42% 9/15/2017 +569 bp NA NA NA NA
Boise Cascade Co B1 BB- Senior Notes $300 11/1/2020 6.375% 99.75 6.44% 11/1/2020 +524 bp 2.2x 1.0x 7.0x 3.1x
Builders FirstSource Inc B3 B+ 1st Lien Notes $618 6/1/2021 7.625% 104.00 6.21% 6/1/2019 +535 bp 6.2x 6.0x 5.7x 4.9x
Builders FirstSource Inc Caa2 B- Senior Notes $418 8/15/2023 10.750% 100.00 10.75% 8/15/2021 +955 bp
CPG Merger Sub LLC Caa2 CCC+ Senior Notes $315 10/1/2021 8.000% 92.63 9.77% 10/1/2021 +857 bp NA NA NA NA
Euramax International Inc Caa2 B- Secured Notes $385 8/15/2020 12.000% 90.63 14.99% 8/15/2020 +1,379 bp NA NA NA NA
GAF Materials Ba2 BBB- Senior Notes $500 2/15/2021 5.125% 102.00 4.55% 2/15/2020 +336 bp NA NA NA NA
GAF Materials Ba2 BBB- Senior Notes $500 2/15/2023 5.500% 103.50 4.69% 2/15/2021 +349 bp
GAF Materials Ba2 BBB- Senior Notes $1,100 11/15/2024 5.375% 102.00 5.01% 11/15/2022 +382 bp
GAF Materials Ba2 BBB- Senior Notes $1,100 10/15/2025 6.000% 105.00 5.19% 10/15/2023 +341 bp
Gibraltar Industries Inc B1 BB- Subordinated Notes $210 2/1/2021 6.250% 101.50 5.66% 2/1/2019 +481 bp 2.3x 1.6x 6.0x 5.2x
Griffon Corp B1 BB- Senior Notes $600 3/1/2022 5.250% 98.00 5.65% 3/1/2022 +445 bp 5.3x 5.0x 3.5x 1.9x
HD Supply Inc Ba3 BB 1st Lien Notes $1,250 12/15/2021 5.250% 104.00 4.30% 12/15/2020 +310 bp 4.9x 4.6x 2.2x 2.0x
HD Supply Inc B3 B Senior Notes $1,275 7/15/2020 7.500% 105.00 4.88% 10/15/2016 +433 bp
HD Supply Inc Caa1 B Senior Notes $1,000 7/15/2020 11.500% 109.50 28.48% 4/27/2016 +2,811 bp
Headwaters Inc B3 B Senior Notes $150 1/15/2019 7.250% 102.13 5.96% 1/15/2018 +524 bp 3.3x 2.6x 2.8x 2.2x
Hillman Group Inc/The Caa1 CCC+ Senior Notes $330 7/15/2022 6.375% 83.50 9.97% 7/15/2022 +877 bp 9.0x 8.9x 1.8x 1.4x
Louisiana-Pacific Corp Ba3 BB- Senior Notes $350 6/1/2020 7.500% 102.50 6.24% 6/1/2018 +551 bp 5.4x -1.1x 2.1x NM
Masonite International Corp B2 BB Senior Notes $475 3/15/2023 5.625% 104.75 4.54% 3/15/2021 +334 bp 2.6x 2.1x 5.5x 4.0x
NCI Building Systems Inc B3 BB- Senior Notes $250 1/15/2023 8.250% 104.50 7.12% 1/15/2021 +592 bp 3.1x 2.6x 4.3x 3.7x
Norbord Inc Ba2 BB- 1st Lien Notes $240 12/1/2020 5.375% 99.50 5.50% 12/1/2020 +430 bp 6.7x 6.6x 2.2x 1.1x
Norbord Inc Ba2 BB- 1st Lien Notes $315 4/15/2023 6.250% 96.25 6.93% 4/15/2023 +516 bp
Nortek Inc B3 B- Senior Notes $735 4/15/2021 8.500% 104.00 6.44% 4/15/2017 +572 bp 5.2x 5.1x 2.8x 2.2x
Northwest Hardwoods Inc [2] B3 B 1st Lien Notes $300 8/1/2021 7.500% 67.50 17.01% 8/1/2021 +1,582 bp NA NA NA NA
Ply Gem Industries Inc Caa1 CCC+ Senior Notes $500 2/1/2022 6.500% 100.00 6.50% 2/1/2020 +530 bp 5.8x 5.2x 2.5x 2.0x
PrimeSource Buidling Products [3] Caa1 CCC+ Senior Notes $200 5/15/2023 9.000% 90.50 10.95% 5/15/2023 +918 bp NA NA NA NA
RSI Home Products Inc B1 B+ 2nd Lien Notes $575 3/15/2023 6.500% 104.50 5.45% 3/15/2021 +425 bp NA NA NA NA
Springs Industries Inc B2 B Secured Notes $470 6/1/2021 6.250% 100.50 6.07% 6/1/2019 +521 bp NA NA NA NA
(EBITDA -
CapEx) /
Interest
(EBITDA -
CapEx) /
Interest
20
Source: Company websites; Company filings; Capital IQ
[1] Announcement Date
Close Date Target (Seller) Acquirer Valuation Highlights
3/21/16 Boxley Materials
Company, Inc.
Summit Materials, Inc. Not Disclosed Boxley Materials Company, Inc. produces and supplies various crushed limestone,
granite, and sandstone to contractors and road builders
The acquisition will enable Summit Materials to expand its geographic footprint in the
Mid-Atlantic region
3/15/16
Colorado Precast
Concrete, Inc.
Oldcastle Not Disclosed
Colorado Precast Concrete, Inc. manufactures concrete products from a combination
of cement and aggregate
The acquisition will enable Oldcastle Precast, Inc. to increase its strong presence in
Colorado, Wyoming and Montana markets
2/29/16[1] Eurobloq Inc. Brampton Brick Ltd. Not Disclosed
Eurobloq Inc. manufactures concrete
The acquisition will enable Brampton Brick Ltd. to expand its manufacturing and
distributing capabilities in Canada
2/29/16 Greco Bros. Ready Mix
Concrete Co., Inc.
U.S. Concrete Not Disclosed
Greco Bros. Ready Mix Concrete Co., Inc. manufactures and markets ready mixed
concrete in New York
The acquisition will enable Ferrara Brothers Building Materials Corp. to optimize its
service efficiencies , enhance raw material purchasing savings and increase its
customer base in the United States
2/1/16 Sherman-Dixie Concrete
Industries, Inc.
Forterra Building
Products
Not Disclosed
Sherman-Dixie Concrete Industries, Inc. manufactures and markets precast concrete
pipes and storms, and sanitary civil engineered systems
The acquisition will enable Forterra Building Products to increase its customer base
and high-quality suite of precast concrete solutions
12/22/15 50% of Knauf / USG
Verwaltungs GmbH and
Knauf / USG Systems
GmbH & Co. KG
Knauf Aquapanel
GmbH
$52 million EV
Joint venture between USG and Knauf manufactures and distributes Aquapanel brand
cement panels in Europe
The sale will allow USG to focus on strengthening North American operations and
growing business in Asia and Australia
Building Materials: Recent M&A activity
Close Date Company Type Use of Proceeds Amount (MM) Maturity Coupon / Spread
2/24/16 Summit Materials Senior notes Acquisition Purposes $250.0 Apr-22 8.500%
11/18/15 U.S. Concrete, Inc. Revolving Credit Facility General Corporate
Purposes
$250.0 Nov-20 L + 125
Building Materials: Recent debt activity
Eagle Materials Inc.
– 1/25/16: Announced the retirement of Steve Rowley as President and CEO and member of the Board of Directors and the
succession by Dave Powers, currently Executive Vice President of Gypsum Wallboard at Eagle
U.S. Concrete, Inc.
– 1/14/16: Appointed Joseph C. Tusa, Jr. as Senior Vice President and Chief Financial Officer
Building Materials: Key company news
$ in millions, except per share data Most Recent Quarter Prior Year Quarter Year-over-Year Change
Company Sales EBITDA Margin Sales EBITDA Margin Sales EBITDA
BUILDING MATERIALS
USG Corporation $925 $234 25.3% $954 $205 21.5% (3.0%) 14.1%
Vulcan Materials Company 857 244 28.5% 755 173 22.9% 13.5% 40.9%
Martin Marietta Materials, Inc. 781 191 24.4% 780 188 24.2% 0.2% 1.2%
Summit Materials, Inc. 360 90 25.1% 294 62 21.2% 22.3% 44.8%
Eagle Materials Inc. 277 97 35.1% 292 102 35.1% (4.8%) (4.8%)
U.S. Concrete, Inc. 264 33 12.4% 180 19 10.6% 46.8% 72.1%
New Enterprise Stone & Lime Co., Inc. 202 45 22.1% 210 31 15.0% (3.6%) 42.2%
Continental Building Products, Inc. 110 33 30.0% 121 34 28.5% (8.6%) (3.8%)
Granite Construction Incorporated (Construction Materials) 66 NA NA 63 NA NA 5.5% NA
Monarch Cement Co. 39 0 0.5% 35 7 19.6% 11.2% (97.1%)
Smith-Midland Corporation 8 1 6.5% 4 (1) (17.4%) 73.8% NM
Total $3,889 $967 24.9% $3,686 $822 22.3% 5.5% 17.7%
21
Source: SEC filings; Bloomberg
Note: Results as of the most recent trailing twelve month period
Building Materials: Public Trading Levels
Building Materials: Operating Performance
$ in millions, except per share data March 31, 2016 LTM Enterprise Value / Price /
Share Market Enterprise Adjusted EBITDA Net Debt / Sales Adjusted EBITDA EPS
Company Price Cap Value Sales EBITDA Margin EBITDA CY2016 CY2017 CY2016 CY2017 CY2016 CY2017
United States
Vulcan Materials Company $105.57 $14,204 $15,901 $3,422 $826 24.1% 2.1x 4.1x 3.6x 14.9x 12.0x 32.2x 23.2x
Martin Marietta Materials, Inc. $159.51 $10,305 $11,723 $3,268 $767 23.5% 1.8x 3.1x 2.7x 12.3x 10.3x 24.1x 17.7x
USG Corporation $24.81 $3,618 $5,157 $3,776 $522 13.8% 2.9x 1.3x 1.2x 8.4x 7.4x 16.4x 12.7x
Eagle Materials Inc. $70.11 $3,497 $3,982 $1,115 $312 28.0% 1.6x 3.3x 2.9x 9.7x 8.2x 17.6x 14.3x
Summit Materials, Inc. $19.45 $968 $2,246 $1,432 $284 19.8% 4.0x 1.4x 1.2x 6.3x 5.5x 16.2x 12.8x
U.S. Concrete, Inc. $59.58 $887 $1,165 $975 $118 12.1% 2.4x 1.0x 0.9x 7.4x 6.3x 17.5x 13.8x
Continental Building Products, Inc. $18.56 $756 $1,036 $422 $94 22.2% 3.0x 2.3x 2.2x 7.8x 7.1x 17.3x 13.5x
Median 22.2% 2.4x 2.3x 2.2x 8.4x 7.4x 17.5x 13.8x
Mean 20.5% 2.5x 2.4x 2.1x 9.5x 8.1x 20.2x 15.4x
Ratings As of 3/31/2016
Issuer Moody's S&P Security Amount Maturity Coupon PriceYield to
Maturity
Spread to
MaturityG-Spread
Debt /
EBITDA
Net Debt
/ EBITDA
EBITDA /
Interest
Investment Grade
Martin Marietta Materials Inc Ba1 BBB Senior Notes $300 4/15/2018 6.600% 106.88 3.08% +235 bp +235 bp 2.1x 1.8x 10.8x 6.3x
Martin Marietta Materials Inc Ba1 BBB Senior Notes $400 7/2/2024 4.250% 100.25 4.21% +244 bp +257 bp
Martin Marietta Materials Inc Ba1 BBB Senior Notes $125 12/1/2025 7.000% 121.88 4.22% +244 bp +246 bp
Martin Marietta Materials Inc Ba1 BBB Senior Notes $230 5/1/2037 6.250% 102.38 6.05% +344 bp +380 bp
Vulcan Materials Co Ba2 BBB Senior Notes $273 6/15/2018 7.000% 109.50 2.53% 6/15/2018 +177 bp 2.4x 2.1x 4.0x 2.6x
Vulcan Materials Co Ba2 BBB Senior Notes $600 6/15/2021 7.500% 118.00 3.66% 6/15/2021 +241 bp
Vulcan Materials Co Ba2 BBB Senior Notes $400 4/1/2025 4.500% 103.00 4.09% 1/1/2025 +227 bp
Vulcan Materials Co Ba2 BBB Senior Notes $250 11/30/2037 7.150% 108.88 6.39% 11/30/2037 +375 bp
Ratings As of 3/31/2016
Issuer Moody's S&P Security Amount Maturity Coupon PriceYield to
Worst
Yield to
Worst Date
Spread to
Worst
Debt /
EBITDA
Net Debt
/ EBITDA
EBITDA /
Interest
High Yield
New Enterprise Stone & Lime Caa3 CCC Senior Notes $250 9/1/2018 11.000% 82.50 20.56% 9/1/2018 +1,983 bp 6.7x 6.5x 1.2x 0.9x
Summit Materials LLC Caa1 B Senior Notes $250 4/15/2022 8.500% 103.50 7.64% 4/15/2021 +644 bp 4.7x 4.0x 3.2x 2.2x
Summit Materials LLC Caa1 B Senior Notes $650 7/15/2023 6.125% 95.25 6.97% 7/15/2023 +519 bp
US Concrete Inc B3 BB- 1st Lien Notes $200 12/1/2018 8.500% 104.00 5.42% 12/1/2016 +487 bp 2.4x 2.4x 5.4x 4.3x
USG Corp B3 B Senior Notes $500 11/15/2016 6.300% 103.00 1.35% 11/15/2016 +80 bp 4.2x 2.9x 3.3x 2.7x
USG Corp B3 B Senior Notes $500 1/15/2018 9.750% 111.50 3.05% 1/15/2018 +232 bp
USG Corp B1 BB+ Senior Notes $250 3/30/2020 7.875% 104.25 3.59% 5/2/2016 +322 bp
USG Corp B1 BB+ Senior Notes $350 11/1/2021 5.875% 104.50 4.50% 11/1/2019 +364 bp
USG Corp B1 BB+ Senior Notes $350 3/1/2025 5.500% 103.38 4.92% 3/1/2023 +314 bp
(EBITDA -
CapEx) /
Interest
(EBITDA -
CapEx) /
Interest
22
Building Materials: Debt comparables
Source: SEC filings; Bloomberg
Note: Results as of the most recent trailing twelve month period
23
Artisan Outdoor, LLC
– 1/26/16: Appointed Roger Bruce as Chief Executive Officer
Comstock Holding Companies, Inc.
– 11/20/15: Received notice of default from Two Rivers Associates LLC under Sales Contracts for the purported failure to
purchase the Two Rivers Contracts
Deer Valley Corporation
– 1/18/16: Announced the resignation of Joel Stephen Logan as the Chief Operating Officer and Vice President, President of
Deer Valley Homebuilders, Inc., and Vice President of Deer Valley Home Repair Services, Inc.
Meritage Homes Corporation
– 1/7/16: Announced the appointment of Hilla Sferruzza as Executive Vice President and Chief Financial Officer post
retirement of Larry W. Seay
NVR, Inc.
– 1/5/16: Appointed Jeffrey D. Martchek as President of Homebuilding Operations
PulteGroup Inc.
– 2/15/16: Appointed Ryan Marshall as President and Harmon Smith as Chief Operating Officer
Skyline Corporation
– 2/4/16: Appointed Jeff Newport as Senior Vice President of Operations
Taylor Morrison
– 12/1/15: Appointed of Alan Laing as Executive Vice President of homebuilding operations
The New Home Company
– 3/15/16: Appointed Joan Marcus-Colvin as Chief Marketing Officer and promoted Megan Eltringham to Vice President of
Marketing
– 1/13/16: Appointed Alan Laing as Executive Vice President of homebuilding operations
UCP, Inc.
– 1/19/16: Appointed James M. Pirrello as Chief Financial Officer. effective January 15, 2016
Woodside Homes, Inc.
– 12/1/15: Announced plans to withdraw its initial public offering of $200 million
Source: Company websites; Company filings; Capital IQ
Homebuilders: Key company news
24
Source: Company websites; Company filings; Capital IQ
Homebuilders: Recent M&A activity
Close Date Target (Seller) Acquirer Valuation Highlights
1/8/16 Acadia Homes &
Neighborhoods LLC
Taylor Morrison
Home
Corporation
$85.0 million EV Acadia Homes & Neighborhoods offers new construction homes in the Atlanta Market
The acquisition will enable Taylor Morrison Home Corporation to expand its strong
presence in Atlanta market
12/15/16
JW Homes, LLC PulteGroup, Inc. $450.0 million EV JW Homes, LLC, doing business as John Wieland Homes and Neighborhoods,
operates as a homebuilding company
The acquisition will enable Installed Building Products, Inc. to expand its presence in
the Southeast United States
Offer Date Company Type Gross Amount (MM) Shares Offered Offering Price
12/7/15 The New Home Company Inc. Follow-On Equity Offering $43.8 3,500,000 $12.50
Close Date Company Type Use of Proceeds Amount (MM) Maturity Coupon / Spread
3/11/16 Beazer Homes USA Inc. Term Loan Debt Refinancing $140.0 Mar-18 L + 550
2/26/16 Lennar Corporation Senior Notes Debt Refinancing $500.0 Apr-21 4.750%
2/25/16 PulteGroup, Inc. Senior Notes Debt Refinancing $700.0 Mar-26 5.500%
2/25/16 PulteGroup, Inc. Senior Notes Debt Refinancing $300.0 Mar-21 4.250%
2/9/16 WCI Communities Inc. Revolving Credit Facility Corporate Purposes $115.0 Feb-20 L + 100
1/6/16 LGI Homes, Inc. Revolving Credit Facility Corporate Purposes $300.0 May-18 L + 350
12/23/15 Century Communities, Inc. Revolving Credit Facility Corporate Purposes $300.0 2018 L + 2.75% - 3.25%
12/17/15 The New Home Company Revolving Credit Facility Debt Refinancing $200.0 Apr-18 NA
11/23/15 M/I Homes Senior notes Corporate Purposes $300.0 Jan-21 6.750%
11/20/15 United Built Homes Revolving Credit Facility Debt Refinancing $150.0 Dec-17 NA
Homebuilders: Recent debt activity
Homebuilders: Recent equity markets activity
$ in millions, except per share data Most Recent Quarter Prior Year Quarter Year-over-Year Change
Company Sales Net Income Margin Sales Net Income Margin Sales Net Income
HOMEBUILDERS
DR Horton Inc. $2,416 $158 6.5% $2,303 $143 6.2% 4.9% 10.7%
PulteGroup, Inc. 2,062 228 11.1% 1,823 217 11.9% 13.1% 5.0%
Lennar Corporation 1,994 144 7.2% 1,644 115 7.0% 21.3% 25.3%
CalAtlantic Group, Inc. 1,700 78 4.6% 762 65 8.5% 123.2% 19.9%
NVR, Inc. 1,558 134 8.6% 1,330 99 7.5% 17.1% 34.7%
Taylor Morrison Home Corporation 970 18 1.8% 1,012 28 2.8% (4.1%) (36.6%)
Toll Brothers Inc. 929 73 7.9% 853 81 9.5% 8.8% (10.0%)
TRI Pointe Group, Inc. 880 85 9.7% 635 41 6.5% 38.6% 105.4%
Meritage Homes Corporation 785 53 6.7% 702 49 7.0% 11.8% 7.5%
KB Home 678 13 1.9% 580 8 1.3% 16.9% 68.3%
MDC Holdings Inc. 579 23 3.9% 506 15 2.9% 14.5% 54.3%
Hovnanian Enterprises Inc. 576 (16) (2.8%) 446 (14) (3.2%) 29.1% NM
M/I Homes, Inc. 469 13 2.8% 368 11 3.0% 27.4% 20.8%
William Lyon Homes 403 26 6.5% 360 18 5.0% 11.9% 46.0%
Shea Homes Limited Partnership 397 52 13.1% 420 60 14.2% (5.4%) (12.7%)
Beazer Homes USA Inc. 344 1 0.3% 266 (22) (8.4%) 29.6% NM
AV Homes, Inc. 226 16 7.0% 104 2 1.5% 117.1% 890.9%
Century Communities, Inc. 206 13 6.4% 141 7 5.1% 46.4% 83.1%
The New Home Company Inc. 195 12 6.3% 73 5 7.3% 166.7% 129.8%
LGI Homes, Inc. 177 16 8.9% 108 8 6.9% 63.0% 108.8%
WCI Communities Inc. 165 10 5.9% 151 13 8.4% 9.6% (22.9%)
UCP, Inc. 107 3 3.0% 46 (2) (4.3%) 131.3% NM
Comstock Holding Companies, Inc. 12 (1) (8.9%) 18 (0) (0.9%) (33.1%) NM
Total $17,828 $1,151 6.5% $14,650 $945 6.5% 21.7% 21.8%
25
Source: SEC filings
[1] Homebuilding segment results
Homebuilders: Quarterly performance
$ in millions, except per share data March 31, 2016 Enterprise Value / Price /
Share Market Enterprise LTM Total Debt / Sales Adjusted EBITDA Ent. Value / Tangible
Company Price Cap Value Sales Capital CY2016 CY2017 CY2016 CY2017 Inventory Book Value
Lennar Corporation $48.36 $10,332 $16,237 $9,824 54.3% 1.5x 1.3x 13.5x 10.7x 2.2x 1.8x
DR Horton Inc. $30.23 $11,373 $13,863 $10,938 38.5% 1.1x 1.0x 11.1x 9.0x 1.7x 1.9x
PulteGroup, Inc. $18.71 $6,481 $8,170 $5,982 34.5% 1.1x 1.0x 9.8x 7.8x 1.5x 1.4x
Toll Brothers Inc. $29.51 $5,003 $8,043 $4,246 44.8% 1.5x 1.4x 16.0x 8.4x 1.1x 1.2x
NVR, Inc. $1,732.40 $7,528 $7,729 $5,168 33.6% 1.3x 1.2x 11.9x 10.6x 7.7x 6.3x
CalAtlantic Group, Inc. $33.42 $4,054 $7,694 $3,540 56.4% 1.2x 1.1x 15.1x 8.7x 1.3x 1.4x
Taylor Morrison Home Corporation $14.12 $1,726 $4,736 $2,977 78.6% 1.4x 1.2x 17.0x 12.7x 1.5x 3.8x
KB Home $14.28 $1,318 $3,647 $3,130 62.1% 1.0x 0.9x 21.7x 13.7x 1.1x 0.8x
TRI Pointe Group, Inc. $11.78 $1,907 $2,888 $2,401 43.8% 1.1x 1.0x 9.8x 8.3x 1.1x 1.3x
Meritage Homes Corporation $36.46 $1,458 $2,324 $2,579 47.9% 0.8x 0.7x 10.0x 9.4x 1.1x 1.2x
Hovnanian Enterprises Inc. $1.56 $230 $2,253 $2,278 115.9% 0.8x 0.7x 15.9x 10.2x 1.4x NM
MDC Holdings Inc. $25.06 $1,228 $1,936 $1,909 43.1% 0.8x 0.7x 17.1x 12.3x 1.1x 1.0x
Beazer Homes USA Inc. $8.72 $277 $1,635 $1,706 70.4% 0.9x 0.8x 11.3x 12.6x 0.9x 0.4x
William Lyon Homes $14.49 $459 $1,554 $1,107 79.3% 1.1x 0.9x 10.6x 8.3x 0.9x 1.6x
M/I Homes, Inc. $18.65 $460 $1,109 $1,418 52.7% 0.7x 0.6x 8.5x NA 1.0x 0.8x
LGI Homes, Inc. $24.21 $491 $761 $630 56.7% 0.9x 0.8x 9.2x 7.2x 1.4x 2.1x
Century Communities, Inc. $17.07 $363 $724 $734 50.4% 0.8x 0.7x 11.3x 9.5x 0.9x 0.9x
WCI Communities Inc. $18.58 $489 $640 $564 37.9% 1.0x 0.7x 8.3x 9.3x 1.2x 1.1x
AV Homes, Inc. $11.36 $257 $537 $518 65.1% 0.8x 0.6x 21.6x NA 0.9x 1.5x
UCP, Inc. $8.04 $65 $309 $279 64.7% 0.9x 0.6x NM NA 0.9x 0.8x
The New Home Company Inc. $12.26 $253 $291 $430 27.3% 0.5x 0.4x 13.5x NA 1.4x 1.1x
Mean 55.1% 1.0x 0.9x 11.6x 9.4x 1.1x 1.2x
Median 52.7% 1.0x 0.8x 13.2x 9.9x 1.5x 1.6x
26
Source: SEC filings
[1] Homebuilding segment results
[2] Excludes land held for sale
Homebuilders: Public Trading Levels
27
Source: SEC filings; Bloomberg
Note: Results as of the most recent trailing twelve month period
[1] Excludes convertible notes and notes with less than $100 million currently outstanding
Homebuilders: Debt comparables[1]
Ratings As of 3/31/2016
Issuer Moody's S&P Security Amount Maturity Coupon PriceYield to
Worst
Yield to
Worst Date
Spread to
Worst
Debt /
EBITDA
Net Debt
/ EBITDA
EBITDA /
Interest
High Yield
AV Homes Inc Caa1 B- Senior Notes $200 7/1/2019 8.500% 97.63 9.36% 7/1/2019 +850 bp 13.2x NM 1.0x 1.0x
Beazer Homes USA Inc Ba3 B+ 2nd Lien Notes $300 4/15/2018 6.625% 102.00 5.00% 7/15/2017 +427 bp 10.4x 9.4x 1.3x 1.1x
Beazer Homes USA Inc Caa1 CCC+ Senior Notes $143 6/15/2016 8.125% 101.50 -3.34% 4/11/2016 -371 bp
Beazer Homes USA Inc Caa1 CCC+ Senior Notes $235 5/15/2019 9.125% 95.38 10.91% 5/15/2019 +1,005 bp
Beazer Homes USA Inc Caa1 CCC+ Senior Notes $200 9/15/2021 7.500% 82.00 12.11% 9/15/2021 +1,091 bp
Beazer Homes USA Inc Caa1 CCC+ Senior Notes $200 2/1/2023 7.250% 78.00 12.07% 2/1/2023 +1,029 bp
CalAtlantic Group Inc Ba2 BB Senior Notes $280 9/15/2016 10.750% 103.75 2.22% 9/15/2016 +167 bp 7.5x 7.2x NM NM
CalAtlantic Group Inc Ba2 BB Senior Notes $230 5/15/2017 8.400% 106.50 2.43% 5/15/2017 +171 bp
CalAtlantic Group Inc Ba2 BB Senior Notes $575 5/15/2018 8.375% 111.50 2.73% 5/15/2018 +200 bp
CalAtlantic Group Inc Ba2 BB Senior Notes $300 5/1/2020 6.625% 109.25 4.13% 5/1/2020 +294 bp
CalAtlantic Group Inc Ba2 BB Senior Notes $400 1/15/2021 8.375% 117.25 4.34% 1/15/2021 +314 bp
CalAtlantic Group Inc Ba2 BB Senior Notes $300 12/15/2021 6.250% 107.50 4.61% 6/15/2021 +341 bp
CalAtlantic Group Inc Ba2 BB Senior Notes $250 10/1/2022 5.375% 102.75 4.88% 10/1/2022 +368 bp
Century Communities Inc B3 B Senior Notes $260 5/15/2022 6.875% 94.63 8.00% 5/15/2022 +680 bp 6.1x 5.6x NM NM
DR Horton Inc Ba1 BB+ Senior Notes $373 4/15/2016 6.500% 100.16 0.72% 4/15/2016 +35 bp 3.0x 2.0x 6.4x 6.0x
DR Horton Inc Ba1 BB+ Senior Notes $350 5/15/2017 4.750% 102.75 2.23% 5/15/2017 +150 bp
DR Horton Inc Ba1 BB+ Senior Notes $400 2/15/2018 3.625% 102.88 1.81% 11/15/2017 +108 bp
DR Horton Inc Ba1 BB+ Senior Notes $500 3/1/2019 3.750% 102.00 2.96% 12/1/2018 +210 bp
DR Horton Inc Ba1 BB+ Senior Notes $500 2/15/2020 4.000% 103.50 3.03% 2/15/2020 +183 bp
DR Horton Inc Ba1 BB+ Senior Notes $350 9/15/2022 4.375% 100.50 4.28% 6/15/2022 +309 bp
DR Horton Inc Ba1 BB+ Senior Notes $300 2/15/2023 4.750% 101.00 4.57% 11/15/2022 +280 bp
DR Horton Inc Ba1 BB+ Senior Notes $400 8/15/2023 5.750% 109.00 4.27% 5/15/2023 +249 bp
K Hovnanian Enterprises Inc B1 /*- B- 1st Lien Notes $577 10/15/2020 7.250% 83.00 12.25% 10/15/2020 +1,105 bp 14.4x NM 1.5x 1.5x
K Hovnanian Enterprises Inc Caa1 /*- CCC 2nd Lien Notes $220 11/15/2020 9.125% 70.00 19.21% 11/15/2020 +1,801 bp
K Hovnanian Enterprises Inc Caa2 /*- CCC Senior Notes $150 1/15/2019 7.000% 60.00 28.87% 1/15/2019 +2,802 bp
K Hovnanian Enterprises Inc Caa2 /*- CCC Senior Notes $250 11/1/2019 8.000% 58.00 27.05% 11/1/2019 +2,619 bp
KB Home B2 B Senior Notes $265 9/15/2017 9.100% 107.75 3.55% 9/15/2017 +282 bp 15.8x NM 8.3x 8.3x
KB Home B2 B Senior Notes $300 6/15/2018 7.250% 106.92 3.92% 6/15/2018 +320 bp
KB Home B2 B Senior Notes $400 5/15/2019 4.750% 100.13 4.70% 2/15/2019 +385 bp
KB Home B2 B Senior Notes $350 3/15/2020 8.000% 105.40 6.43% 3/15/2020 +523 bp
KB Home B2 B Senior Notes $450 12/15/2021 7.000% 99.88 7.02% 12/15/2021 +583 bp
KB Home B2 B Senior Notes $350 9/15/2022 7.500% 100.38 7.42% 9/15/2022 +623 bp
KB Home B2 B Senior Notes $250 5/15/2023 7.625% 99.00 7.81% 5/15/2023 +603 bp
Lennar Corp Ba2 BB Senior Notes $240 4/15/2016 6.500% 100.10 2.84% 4/15/2016 +247 bp 5.5x 4.7x NM NM
Lennar Corp Ba2 BB Senior Notes $400 6/1/2017 12.250% 110.75 2.73% 6/1/2017 +200 bp
Lennar Corp Ba2 BB Senior Notes $400 12/15/2017 4.750% 102.75 2.80% 9/15/2017 +207 bp
Lennar Corp Ba2 BB Senior Notes $250 6/1/2018 6.950% 107.75 3.20% 6/1/2018 +247 bp
Lennar Corp Ba2 BB Senior Notes $275 12/1/2018 4.125% 102.00 3.28% 10/1/2018 +256 bp
Lennar Corp Ba2 BB Senior Notes $500 6/15/2019 4.500% 103.25 3.36% 4/16/2019 +251 bp
Lennar Corp Ba2 BB Senior Notes $600 11/15/2019 4.500% 102.50 3.70% 8/15/2019 +285 bp
Lennar Corp Ba2 BB Senior Notes $500 4/1/2021 4.750% 103.00 4.06% 2/1/2021 +286 bp
Lennar Corp Ba2 BB Senior Notes $575 11/15/2022 4.750% 100.75 4.61% 8/15/2022 +342 bp
Lennar Corp Ba2 BB Senior Notes $400 12/15/2023 4.875% 100.00 4.87% 12/15/2023 +310 bp
Lennar Corp Ba2 BB Senior Notes $500 5/30/2025 4.750% 76.50 8.49% 5/30/2025 +672 bp
M/I Homes Inc B1 B+ Senior Notes $300 1/15/2021 6.750% 99.13 6.96% 1/15/2021 +576 bp 4.7x 4.6x 8.2x 8.0x
MDC Holdings Inc Ba2 BB+ Senior Notes $250 2/1/2020 5.625% 101.25 5.26% 2/1/2020 +406 bp 8.3x 6.2x NM NM
MDC Holdings Inc Ba2 BB+ Senior Notes $250 1/15/2024 5.500% 104.00 4.86% 10/15/2023 +308 bp
MDC Holdings Inc Ba2 BB+ Senior Notes $350 1/15/2043 6.000% 76.75 8.15% 1/15/2043 +554 bp
Meritage Homes Corp Ba3 BB- Senior Notes $175 3/1/2018 4.500% 100.13 4.43% 2/1/2018 +370 bp 4.8x 3.7x NM NM
Meritage Homes Corp Ba3 BB- Senior Notes $300 4/15/2020 7.150% 105.75 5.54% 4/15/2020 +434 bp
Meritage Homes Corp Ba3 BB- Senior Notes $300 4/1/2022 7.000% 105.25 5.95% 4/1/2022 +475 bp
Meritage Homes Corp Ba3 BB- Senior Notes $200 6/1/2025 6.000% 99.88 6.02% 6/1/2025 +424 bp
PulteGroup Inc [1] Ba1 BB+ Senior Notes $465 5/1/2016 6.500% 100.25 2.95% 5/1/2016 +258 bp 2.9x 2.0x NM NM
PulteGroup Inc Ba1 BB+ Senior Notes $123 10/15/2017 7.625% 107.00 2.91% 10/15/2017 +218 bp
PulteGroup Inc Ba1 BB+ Senior Notes $300 3/1/2021 4.250% 101.50 3.91% 2/1/2021 +271 bp
PulteGroup Inc Ba1 BB+ Senior Notes $700 3/1/2026 5.500% 98.00 5.77% 3/1/2026 +399 bp
PulteGroup Inc Ba1 BB+ Senior Notes $300 6/15/2032 7.875% 113.00 6.56% 6/15/2032 +396 bp
PulteGroup Inc Ba1 BB+ Senior Notes $400 5/15/2033 6.375% 102.00 6.18% 5/15/2033 +358 bp
PulteGroup Inc Ba1 BB+ Senior Notes $300 2/15/2035 6.000% 97.50 6.23% 2/15/2035 +362 bp
Taylor Morrison Communities Inc B2 BB- Senior Notes $550 4/15/2021 5.250% 98.50 5.60% 4/15/2021 +440 bp 6.1x 5.6x NM NM
Taylor Morrison Communities Inc B2 BB- Senior Notes $350 4/15/2023 5.875% 95.50 6.69% 4/15/2023 +491 bp
Taylor Morrison Communities Inc B2 BB- Senior Notes $350 3/1/2024 5.625% 102.50 5.22% 12/1/2023 +345 bp
Toll Brothers Finance Corp Ba1 BB+ Senior Notes $400 10/15/2017 8.910% 109.77 2.36% 10/15/2017 +164 bp 6.7x 6.0x 16.3x 16.0x
Toll Brothers Finance Corp Ba1 BB+ Senior Notes $350 12/31/2018 4.000% 104.50 2.24% 11/30/2018 +152 bp
Toll Brothers Finance Corp Ba1 BB+ Senior Notes $250 11/1/2019 6.750% 99.50 6.91% 11/1/2019 +605 bp
Toll Brothers Finance Corp Ba1 BB+ Senior Notes $420 2/15/2022 5.875% 107.13 4.43% 11/15/2021 +323 bp
Toll Brothers Finance Corp Ba1 BB+ Senior Notes $400 4/15/2023 4.375% 98.25 4.67% 4/15/2023 +290 bp
Toll Brothers Finance Corp Ba1 BB+ Senior Notes $250 1/15/2024 5.625% 103.50 5.06% 10/15/2023 +329 bp
Toll Brothers Finance Corp Ba1 BB+ Senior Notes $350 11/15/2025 4.875% 100.00 4.87% 11/15/2025 +310 bp
TRI Pointe Group Inc / TRI Pointe Homes IncB1 BB- Senior Notes $450 6/15/2019 4.375% 98.75 4.80% 6/15/2019 +394 bp 4.0x 3.2x NM NM
TRI Pointe Group Inc / TRI Pointe Homes IncB1 BB- Senior Notes $450 6/15/2024 5.875% 99.38 5.97% 6/15/2024 +420 bp
WCI Communities Inc B3 B+ Senior Notes $250 8/15/2021 6.875% 99.13 7.07% 8/15/2021 +587 bp 3.7x 1.9x NM NM
Weekley Homes LLC B2 BB- Senior Notes $200 2/1/2023 6.000% 91.88 7.54% 2/1/2023 +577 bp NA NA NM NM
William Lyon Homes Inc B3 B- Senior Notes $150 4/15/2019 5.750% 94.75 7.73% 4/15/2019 +687 bp 7.5x 7.2x NM NM
William Lyon Homes Inc B3 B- Senior Notes $425 11/15/2020 8.500% 102.50 7.42% 11/15/2018 +670 bp
William Lyon Homes Inc B3 B- Senior Notes $350 8/15/2022 7.000% 94.88 8.04% 8/15/2022 +684 bp
Woodside Homes Co LLC B3 B Senior Notes $305 12/15/2021 6.750% 89.13 9.25% 12/15/2021 +805 bp NA NA NA NA
(EBITDA -
CapEx) /
Interest
28
For additional information on KeyBanc Capital Markets, please contact any of the individuals listed below.
Pat Curry
Managing Director
212.476.7428
pcurry@key.com
Sokol Cano
Director
212.476.7449
scano@key.com
Luke Pasch
Analyst
212.476.7422
lucas.pasch@key.com
BUILDING PRODUCTS TEAM CONTACTS
December 2014
$62,000,000
Sr. Secured Credit Facilities
Joint Lead Arranger, Joint
Bookrunner, and Administrative
Agent
December 2014
Joint Lead Arranger, Joint
Bookrunner, and Administrative
Agent
Incremental Term Loan
November 2014
Joint Bookrunner
$300,000,000
ABL Credit Facility
September 2014
Sell-Side Advisor
$111,000,000
was acquired by
October 2014
Joint Lead Arranger and Joint
Bookrunner
$1,075,000,000
Sr. Secured Credit Facilities
March 2015
Lender
$250,000,000
Revolving Credit Facility
March 2015
Lender
$230,000,000
Sr. Secured Credit Facilities
July 2015
ABL Credit Facility and
Term Loan
Sole Lender
April 2015
$250,000,000
Sr. Secured Credit Facilities
Joint Lead Arranger and Joint
Bookrunner
April 2015
$200,000,000
Sr. Secured Credit Facilities
Joint Lead Arranger, Sole
Bookrunner, and Admin. Agent
July 2015
Lender
$1,000,000,000
Senior Unsecured Credit
Facilities
Ross Anderskow
Analyst
212.476.7494
Ross.m.anderskow@key.com
$100,000,000
Sr. Secured Credit Facilities
July 2014
Sole Arranger, Sole Bookrunner,
and Admin. Agent
September 2014
Co-Manager
$150,000,000
Sr. Unsecured Mirror Notes
September 2014
Joint Lead Arranger, Joint
Bookrunner, and Syndication
Agent
$235,000,000
Sr. Secured Credit Facilities
December 2014
has been acquired by
Sell-Side Advisor
a portfolio company of
July 2015
Co-Manager
$800,000,000
Senior Unsecured Notes
September 2015
has announced its divestiture of
Sell-Side Advisor
$35,500,000
Fittings & Tubing Business
to
July 2015
$2,200,000,000
ABL Facility, Term Loan, and
Senior Unsecured Notes
Joint Lead Arranger and Joint
Bookrunner
November 2015
$350,000,000
ABL Credit Facility
Participant
December 2015
Joint Lead Arranger and Joint
Bookrunner
$300,000,000
Revolving Credit Facility
December 2015
has been acquired by
Sell-Side Advisor
a portfolio company of
February 2016
has been acquired by
Sell-Side Advisor
a portfolio company of
February 2016
Joint Lead Arranger and Joint
Bookrunner
$800,000,000
Revolving Credit Facility and
Term Loan
February 2016
Joint Lead Arranger, Sole
Bookrunner, and Administrative
Agent
$325,000,000
Revolving Credit Facility and
Term Loan
Lender
March 2016
$350,000,000
Revolving Credit Facility
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