This month’s issue of the monthly executive brief providing M&A market insight for C-level management and their professional advisors.
The North American construction industry is on the rise. Spending is at four-year high, and M&A activity is a healthy level.
The Census Bureau reports that construction spending in 2014 increased 5.4% from 2013, reaching its highest amount since 2011. There were gains in private industry spending, while public spending remained flat. See chart below for a broader 22-year comparison by CalculatedRisk. Looking forward, besides the uncertainty in oil and gas, private and public construction spending should continue to increase in 2015.
In Q4, there were 80 reported transactions in the construction and engineering industry, with an average enterprise value of $144.9 million. Notable deals include Mattamy Homes’ acquisition of Wimprey Holdings and NCI Building Systems’ purchase of CENTRIA Corp.
As the North American construction industry reaches new highs in 2015, middle-market business should expect increased revenues and profits.