As MDM finalizes its 2016 Market Leaders across 15 industry verticals, look for the biggest shakeup on the Top Building Materials & Construction Distributors list, which has seen some blockbuster M&A activity in the past year.
Builders FirstSource Inc.'s $1.6 billion purchase of ProBuild Holdings LLC, announced in April 2015, united two of the largest building materials companies in the United States. ProBuild was No. 2 and Builders FirstSource was No. 7 on the sector's 2015 MDM Market Leaders list.
Beacon Roofing Supply Inc.'s acquisitive year was highlighted by its $1.1 billion purchase of Roofing Supply Group in July, another deal that united two companies ranked on the 2015 MDM Market Leaders list for building materials & construction – Beacon Roofing at No. 4 and Roofing Supply Group at No. 10.
The merger of Stock Building Supply Holdings Inc. and Building Materials Holding Corp., announced in June 2015, formed a building materials distribution services and solutions company with an implied pro forma enterprise value of $1.5 billion and geographic reach across the U.S.
Other companies on last year's list, including top-ranked ABC Supply Co., have been acquisitive in the past couple of years. And with ProBuild and Roofing Supply Group falling out of the Top 10 because of consolidation with others on the list, look for some other companies to join the ranks of the largest building materials & construction distributors.
M&A isn't the sector's only notable story. Thanks to healthy commercial and residential construction, distributors are growing organically, as well. After posting 3.4 percent revenue growth in 2015, building materials & construction wholesale distributors are forecasted for 10.1 percent growth this year and 15.9 percent growth in 2017, according to the newly released 2016 Economic Benchmarks for Wholesale Distribution report.
Look for the complete MDM Market Leaders rankings and Distribution Trends Special Issue on June 25.
