BUILDING PRODUCTS & MATERIALS

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www.harriswilliams.com

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

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UILDING

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RODUCTS

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ATERIALS

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ROUP

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VERVIEW



WHAT WE’RE READING



PUBLIC MARKETS



PUBLIC COMPARABLES



M&A ACTIVITY

CONTACTS

Mike Hogan

Managing Director

[email protected]

+1 (804) 915-0104

Ryan Nelson

Managing Director

[email protected]

+1 (804) 915-0121

Trey Packard

Vice President

[email protected]

+1 (804) 887-6016

INTRODUCTION

Harris Williams & Co. is pleased to present our Building Products and Materials

Industry Update for June 2016. This report provides commentary and analysis on

current capital market trends and merger and acquisition dynamics within the

global building products and materials industry.

We hope you find this edition helpful and encourage you to contact us directly if

you would like to discuss our perspective on current industry trends and M&A

opportunities or our relevant industry experience.

OUR PRACTICE

Harris Williams & Co. is a leading advisor to the building products and materials

industry. Our significant experience covers a broad range of end markets,

industries, and business models.

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Aggregates

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Aluminum

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Asphalt



Bricks



Clay

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Glass

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Precast / Ready-Mix Concrete

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Steel

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Stone

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Acoustical

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Cabinets and

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Countertops

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Carpet and Flooring

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Gypsum / Wallboard

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Electrical Fixtures

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HVAC



Lumber



Plumbing Fixtures

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Roofing



Siding



Tools and Hardware



Windows and Doors



Architectural and



Engineering



Installation and



Contracting



Lumber and



Hardware



Plumbing



Roofing and Siding



Site Development



Wallboard

Construction

Materials

Building Products

Distribution &

_Services

www.harriswilliams.com

Construction

Materials

Building

Products

Distribution &

Services

has been acquired by

a portfolio company of Select Atlanta, Georgia aggregates assets of LaFarge SA have been acquired by has been acquired by

a division of

a portfolio company of

a subsidiary of

has been acquired by has been acquired by

&

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EADING

NAR SURVEY: 71% OF POTENTIAL HOMEBUYERS WITH STUDENT DEBT SIDELINED FROM MARKET

JLL: 24% SURGE IN RETAIL SECTOR DRIVING Q1 CONSTRUCTION GAINS

COMMERCIAL CONSTRUCTION PLANNING DRIVES 2.4% RISE IN DODGE MOMENTUM INDEX

HOME AND MULTIFAMILY RESIDENTIAL DEBT EXPAND

Construction Dive

6/8/2016

The Dodge Momentum Index increased 2.4% in May to 119.4, a bump up from the upwardly adjusted April figure of

116.6, due largely to a 6.5% surge in commercial project planning. This second consecutive monthly rise in commercial

project planning helped the Index overcome a 3.4% May decrease in institutional planning, which is part of a 1.3%

year-over-year dip in that category from robust activity in the fourth quarter of 2015 and the first quarter of this year.

Read the full article

here

.

FORECLOSURE INVENTORY DROPS 23.4% IN APRIL

Construction Dive

6/14/2016

71% of potential homeowners saddled with student loan debt said the financial burden was keeping them from

buying a home, according to a joint National Association of Realtors and SALT/American Student Assistance survey.

Over 50% of all respondents with loans said their student debt would delay homeownership by more than five years,

and 40% said it would keep them from moving out of a family member's home.

Read the full article

here

.

NAHB

6/10/2016

According to the Federal Reserve Board’s first quarter of 2016 release of its Financial Accounts of the United States

report, household holdings of real estate, measured on a not seasonally adjusted basis, totaled $22.524 trillion in the

first quarter of 2016, $1.140 trillion higher than its level in the first quarter of 2015, $21.113 trillion. At the same time, home

mortgage debt outstanding, $9.511 trillion in the first quarter of 2016, rose by $136.4 billion over the same four-quarter

period. Since the total value of household-held real estate rose faster than the aggregate amount of mortgage debt

outstanding, then home equity held by households grew. Over the year, total home equity held by households grew

by $1.275 trillion, 10.9%, to $13.014 trillion. Household’s home equity is now 57.8% of household real estate.

Read the full article

here

.

Builder

6/14/2016

CoreLogic on Tuesday said its April 2016 National Foreclosure Report shows foreclosure inventory declined by 23.4%

and completed foreclosures declined by 15.8% compared with April 2015. The number of completed foreclosures

nationwide decreased year over year from 43,000 in April 2015 to 37,000 in April 2016, representing a decrease of

68.9% from the peak of 117,813 in September 2010.

The foreclosure inventory represents the number of homes at some stage of the foreclosure process and completed

foreclosures reflect the total number of homes lost to foreclosure. Since the financial crisis began in September 2008,

there have been approximately 6.2 million completed foreclosures nationally, and since home ownership rates

peaked in the second quarter of 2004, there have been approximately 8.3 million homes lost to foreclosure.

Read the full article

here

.

Construction Dive

6/6/2016

Real estate company JLL reported that retail construction activity in the first quarter of 2016 is 24.4% higher than the

first quarter of 2015 — a performance strong enough to help boost nonresidential construction employment 4.7%

during the same period, Building Design + Construction reported. JLL predicted continued commercial construction

growth into the second quarter — including in the industrial and office sectors — but said that concerns over the

economic downturn in China, coupled with a near 1% decrease in the quarter-over-quarter U.S. gross domestic

product, were hampering investment, as evidenced by a downward tick in office construction starts.

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6.0x 7.0x 8.0x 9.0x 10.0x 11.0x 12.0x 13.0x

Building Products Index

Building Products Distributors Index Construction Materials Index S&P 500 Index 60 80 100 120 140 160 180 200 220 240

Building Products Index

Building Products Distributors Index Construction Materials Index S&P 500 Index

8.1%

8.8%

5.8%

Construction Materials Building Products Distributors Building Products

P

UBLIC

M

ARKETS

MEDIAN TEV / 2016E EBITDA

MEDIAN REVENUE GROWTH (2016E – 2017P)

MEDIAN EBITDA MARGIN (2012 – 2016E)

MEDIAN EBITDA MARGIN (2016E – 2017P)

MEDIAN CAPEX / 2016E REVENUE

MEDIAN REVENUE GROWTH (2012 – 2016E)

HISTORICAL STOCK PRICES

(JUNE 14

TH

_{, 2011 – JUNE 14}

TH

_{, 2016)}

HISTORICAL MEDIAN TEV / NTM EBITDA

_{(JUNE 14}

TH

_{, 2011 – JUNE 14}

TH

_{, 2016)}

17.0%

6.0%

15.1%

9.0x

8.8x

9.3x

9.2%

8.1%

6.9%

14.0%

4.6%

11.8%

6.5%

1.1%

3.3%

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P

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OMPARABLES

BUILDING PRODUCTS

As of June 14, 2016

Building Products

Stock Performance

Current % of 2016E TEV / EBITDA EBITDA

($ in millions except per share data) Price LTM High Mkt Cap TEV Rev. EBITDA Current 2016E 2017P Windows & Doors

Masonite International Corp. $67.78 92.5% $1,863 $2,547 $2,030 $255 12.6% 10.0x 8.5x

Ply Gem Holdings, Inc. 13.97 88.9% 854 1,882 1,964 232 11.8% 8.1x 6.9x

Tyman Plc 3.18 60.7% 749 658 595 97 16.4% 6.8x 6.2x

Quanex Building Products Corporation 19.26 87.8% 641 944 969 119 12.3% 8.0x 7.1x

PGT, Inc.1 _10.08 _61.9% ₅₅₆ ₇₄₃ ₄₆₆ ₈₁ _17.4% _9.2x _7.7x

Median 87.8% $969 $119 12.6% 8.1x 7.1x

Roofing, Decking & Siding

Kingspan Group Plc $26.62 92.5% $4,675 $5,169 $3,450 $405 11.7% 12.8x 11.8x

USG Corporation 26.54 80.7% 3,538 5,462 3,994 680 17.0% 8.0x 7.1x

Trex Company, Inc. 41.29 77.1% 1,176 1,371 472 117 24.9% 11.7x 10.3x

Continental Building Products, Inc. 21.95 90.7% 729 1,184 453 140 30.9% 8.5x 7.9x

Median 85.7% $1,961 $273 20.9% 10.1x 9.1x

Cabinets, Plumbing / HVAC

Masco Corporation $30.41 92.4% $9,353 $12,263 $7,448 $1,190 16.0% 10.3x 9.5x

Fortune Brands Home & Security, Inc. 55.97 93.3% 8,875 10,241 5,107 774 15.1% 13.2x 11.6x

Lennox International Inc. 135.42 94.6% 5,580 7,113 3,651 523 14.3% 13.6x 12.3x

American Woodmark Corporation 64.73 72.0% 1,186 888 1,058 119 11.2% 7.5x 6.6x

Nortek, Inc. 49.85 53.6% 709 2,172 2,609 300 11.5% 7.2x 6.7x

Median 92.4% $3,651 $523 14.3% 10.3x 9.5x

Hardware

ASSA ABLOY AB $19.42 87.6% $23,452 $24,271 $8,535 $1,540 18.0% 15.8x 14.4x

Simpson Manufacturing Co., Inc. 38.92 97.3% 1,645 1,654 859 167 19.4% 9.9x 8.9x

Richelieu Hardware Ltd 18.63 96.3% 1,044 1,108 648 73 11.3% 15.1x 14.0x

Median 96.3% $859 $167 18.0% 15.1x 14.0x

Glass / Building Systems

Owens Corning $48.75 92.8% $5,451 $7,617 $5,568 $972 17.5% 7.8x 7.2x

Apogee Enterprises, Inc. 43.64 71.5% 1,130 1,212 1,078 153 14.2% 7.9x 6.8x

NCI Building Systems, Inc. 15.89 95.6% 775 1,499 1,675 158 9.4% 9.5x 8.2x

Median 92.8% $1,675 $158 14.2% 7.9x 7.2x

Flooring

Mohawk Industries, Inc. $191.59 90.3% $14,001 $17,453 $8,934 $1,665 18.6% 10.5x 9.9x Armstrong World Industries, Inc. 39.96 65.8% 2,532 3,049 1,395 327 23.4% 9.3x 8.7x

Interface, Inc. 16.79 61.8% 1,261 1,253 999 148 14.9% 8.4x 7.4x

Median 65.8% $1,395 $327 18.6% 9.3x 8.7x

Overall Median

88.9% $1,675 $232 15.1% 9.3x 8.2x

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OMPARABLES

BUILDING PRODUCTS DISTRIBUTORS

1) 2015 Pro forma EBITDA figure of $130 million from BMC Stock investor presentation dated May 2016

As of June 14, 2016

Building Products Distributors

($ in millions except per share data) Price LTM High Mkt Cap TEV Rev. EBITDA Current 2016E 2017P Wolseley plc Sponsored ADR $4.95 71.4% $17,412 $14,544 $20,614 $1,525 7.4% 9.5x 8.9x

HD Supply Holdings, Inc. 33.97 92.3% 5,257 10,859 7,575 961 12.7% 11.3x 10.4x

Beacon Roofing Supply, Inc. 42.82 93.7% 1,618 3,598 4,186 347 8.3% 10.4x 9.5x

Builders FirstSource, Inc. 11.04 66.1% 1,216 3,137 6,555 421 6.4% 7.4x 6.1x

BMC Stock Holdings, Inc.1 _17.96 _88.0% _1,094 _1,594 _3,156 ₁₈₇ _5.9% _8.5x _7.0x

Hardwoods Distribution Inc. 12.29 86.5% 217 236 501 30 6.0% 7.8x 6.8x

CanWel Building Materials Group Ltd. 4.33 88.8% 146 346 750 40 5.3% 8.8x 7.1x

Huttig Building Products, Inc. 5.41 95.2% 95 195 710 21 3.0% 9.3x 7.2x

Goodfellow Inc. 8.56 94.0% 66 138 452 17 3.8% 8.1x 7.7x

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P

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OMPARABLES

CONSTRUCTION MATERIALS

As of June 14, 2016

Construction Materials

($ in millions except per share data) Price LTM High Mkt Cap TEV Rev. EBITDA Current 2016E 2017P Aggregates and Cement

LafargeHolcim Ltd. $40.78 53.1% $30,430 $48,179 $30,458 $6,374 20.9% 7.6x 7.3x

CRH Plc1 _28.59 _90.6% _23,708 _30,834 _31,519 _3,534 _11.2% _8.7x _7.8x

HeidelbergCement AG2 _79.13 _86.2% _15,437 _22,227 _15,805 _3,255 _20.6% _6.8x _6.0x

Vulcan Materials Company 114.17 94.8% 12,647 17,254 3,927 1,106 28.2% 15.6x 12.6x Martin Marietta Materials, Inc. 181.67 93.7% 8,807 13,419 3,667 1,035 28.2% 13.0x 10.9x

Eagle Materials Inc. 78.51 90.2% 3,402 4,433 1,225 423 34.6% 10.5x 9.1x

Summit Materials, Inc. 19.68 68.9% 1,197 2,543 1,534 365 23.8% 7.0x 6.0x

Median 90.2% $3,927 $1,106 23.8% 8.7x 7.8x

Heavy Construction Materials

James Hardie Industries PLC Chess Units of Foreign Securities$14.86 93.2% $6,122 $7,080 $1,892 $494 26.1% 14.3x 12.7x

Boral Limited 4.76 92.5% 3,436 4,360 3,208 464 14.5% 9.4x 8.8x

Headwaters Incorporated 17.46 80.2% 1,389 1,827 1,002 195 19.5% 9.4x 8.3x

U.S. Concrete, Inc. 60.34 86.6% 783 1,180 1,210 170 14.0% 7.0x 6.0x

Median 89.5% $1,551 $329 17.0% 9.4x 8.5x

Cabinets, Plumbing / HVAC

Weyerhaeuser Company $28.75 86.8% $15,304 $27,005 $7,240 $1,824 25.2% 14.8x 12.8x

West Fraser Timber Co. Ltd. 30.00 52.2% 3,118 3,016 3,474 469 13.5% 6.4x 5.0x

Louisiana-Pacific Corporation 17.29 91.1% 2,575 2,860 2,173 266 12.2% 10.8x 9.4x

Canfor Corporation 10.37 45.8% 1,930 2,008 3,286 369 11.2% 5.4x 4.2x

Universal Forest Products, Inc. 87.24 98.1% 1,387 1,794 3,121 194 6.2% 9.3x 8.7x

Norbord Inc. 21.39 89.3% 1,657 2,626 1,718 309 18.0% 8.5x 7.0x

Boise Cascade Co. 21.92 55.1% 991 1,245 3,939 163 4.1% 7.7x 6.1x

Median 86.8% $3,286 $309 12.2% 8.5x 7.0x

Overall Median

88.1% $3,247 $444 18.7% 9.0x 8.1x

1) 2015 Pro forma EBITDA figure of $3.2 billion from CRH investor presentation dated March 2016

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M&A T

RANSACTIONS

Announced

Date Target Vertical Business Description Acquirer

6/13/2016 Rugby Architectural Building Products

Building Products Distribution

Rugby Architectural Building Products distributes non-structural architectural grade building products to customers that supply end-products to the commercial market.

Hardwoods Distribution

6/13/2016 Lumotech, Certain assets in Europe

Building Products Lumotech is a manufacturer of specialty LED products with a focus on rechargeable, emergency lighting.

Fulham Company Group

6/10/2016 Panolam Surface Solutions Building Products Panolam Surface Systems is a designer and manufacturer of highly-engineered, integrated surface solutions including high-pressure laminates, thermally-fused laminates, and other specialty products.

Insight Equity

6/8/2016 Exteria Building Products Building Products Exteria Building Products LLC manufactures sides, windows, fascia, roofing, and gutters services. Its products include cape cod perfection, scalloped perfection, hand-split shake, and cedar pride.

Novik Inc.

6/7/2016 Monofrax Building Products Monofrax is engaged in the manufacturing of fused cast refractory for glass manufacturers.

Callista Private Equity

6/6/2016 KITH Kitchens LLC Building Products KITH Kitchens LLC provides customizable kitchen and bath cabinets. It offers full lines of both framed and frameless cabinetry with an expertise in hand-painted finishes.

Pfingsten Partners LLC

6/2/2016 Johnson Insulation, Certain assets

Johnson Insulation specializes in laminating metal building insulation. Distribution International

6/1/2016 Raymond Building Supply Corp.

Raymond Building Supply Corp. supplies residential and commercial building products. Its products include millwork, plywood, trusses ,and Andersen windows.

U.S. LBM

6/1/2016 Woodfeathers, Inc. Building Products Woodfeathers, Inc. manufactures and supplies roofing materials to homeowners, builders, architects, and contractors.

Beacon Roofing Supply, Inc.

5/26/2016 Albuquerque Hardwood Lumber Co.

Albuquerque Hardwood Lumber Co. wholesales and supplies wood products. It sells hardwood lumber, wood panels, and related hardware.

Rugby IPD Corp

5/24/2016 TekModo Building Products TekModo is a manufacturer and seller of composite panels that are currently being used in the walls, roofs, floors and doors of RVs, buses and trailers.

CarbonOne Technologies

5/20/2016 Lamin-Art, Inc. Building Products Lamin-Art designs and manufactures laminates and decorative surfaces. Arborite 5/9/2016 Universal Building Specialties Incorporated Building Products Distribution

Universal Building Specialties Incorporated distributes building products. Cedar Creek Inc.

5/6/2016 SEI Group, Inc. Building Products SEI Group, Inc. provides construction contracting services for single and multi-family homes.

Narrow Gauge Capital

5/4/2016 Sierra Ready Mix, LLC Construction Materials Sierra Ready Mix, LLC supplies ready mix concrete in Las Vegas, Nevada.

Summit Materials, Inc.

5/2/2016 CEMEX, S.A.B. de C.V., Certain assets in U.S.

Construction Materials CEMEX, S.A.B. de C.V., Certain assets in U.S. comprises cement plants, three cement terminals, and the building materials business.

Grupo Cementos de Chihuahua SAB de CV 5/2/2016 Fox Brothers Company Building Products

Distribution

Fox Brothers Company supplies exterior building materials for new construction and remodeling projects in Michigan.

4/30/2016 Masonite Architectural Door Company, Plant in Fredericksburg

Building Products Masonite Architectural Door Company's plant in Fredericksburg was acquired by The Lester Group, Inc. The plant manufactures and pre-finishes commercial doors.

The Lester Group, Inc.

4/29/2016 Surface Encounters LLC Building Products Surface Encounters LLC fabricates granite and quartz countertops for kitchens, bathrooms, and bars in Michigan and Indiana.

Cutting Edge Countertops Inc.

4/18/2016 Athabasca Minerals Inc., DML 150166, DML 150171 And DLO 150210

Construction Materials Athabasca Minerals Inc., DML 150166, DML 150171 And DLO 150210 comprise industrial minerals deposits.

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M&A T

RANSACTIONS

Announced

4/15/2016 United States Pipe and Foundry Company, LLC

Building Products United States Pipe and Foundry Company, LLC manufactures and sells fabricated/grooved ductile iron pipes and fittings for water and wastewater industries in the United States and internationally.

Forterra Building Products

4/11/2016 Fomo Products, Inc. Building Products Fomo Products, Inc. manufactures low pressure polyurethane (PU) foam insulation, sealants, adhesives, and spray foam systems in pressurized packaging.

ICP Adhesives and Sealants, Inc. 4/1/2016 House Of Threads, Inc. Building Products

Distribution

House Of Threads, Inc. markets and distributes fasteners. Wurth Group Of North America Inc. 4/5/2016 Tierra Sol Ceramic Tile Ltd. Building Products

Distribution

Tierra Sol Ceramic Tile Ltd. distributes ceramic and porcelain tiles, glass/metal products, natural stones, and setting products to designers, architects, contractors, and retailers.

Shnier Gesco Limited Partnership 4/5/2016 Blue Max Materials, Inc. Construction Materials Blue Max Materials, Inc. offers a selection of landscape and hardscape

materials to professional contractors and do-it-yourself homeowners for their landscaping needs.

SiteOne Landscape Supply, Inc.

4/4/2016 Benbilt Building Systems LP Building Products Distribution

Benbilt Building Systems LP is engaged in the wholesale distribution of doors to builders and remodelers.

Huttig Building Products Inc.

4/5/2016 Boston Cedar, Inc. Building Products Distribution

Distributes building materials including siding, trim, decking, railing, and millwork products.

U.S. LUMBER GROUP, LLC

4/4/2016 United Subcontractors, Inc.

Building Products United Subcontractors, Inc. provides insulation, specialty, and shell construction services for residential and commercial projects.

Hennessy Capital Acquisition Corp. 4/1/2016 L. M. Scofield Company Construction Materials L. M. Scofield Company manufactures decorative concrete products. Sika AG

4/1/2016 Strickland Bridge, Inc. Construction Materials Strickland Bridge, Inc. manufactures concrete. U.S. Concrete, Inc.

4/1/2016 Atlantic Building Products, Inc.

Atlantic Building Products, Inc. is a building supply dealer that provides building products to contractors and homeowners.

4/1/2016 LYF-TYM Building Products Co, Inc.

Building Products LYF-TYM Building Products Co, Inc. manufactures and distributes low-maintenance exterior building products.

4/1/2016 Professional Handling and Distribution, Inc.

Professional Handling and Distribution, Inc. distributes drywall and related products for commercial and residential customers in the greater Chicagoland and Rockford areas.

GMS Inc.

3/31/2016 American Lumber Corporation

Building Products American Lumber Corporation, also known as ALCO Doors, manufactures interior and entry door systems for commercial and residential use.

U.S. LBM Holdings, LLC

3/30/2016 Design and Direct Source LLC

Building Products Design and Direct Source LLC provides floor and wall tiles, and stone and wood products for commercial projects.

Materials Marketing Limited

3/23/2016 Squaw Canyon Prospect In Paradox Basin

Construction Materials Squaw Canyon Prospect In Paradox Basin comprises a limestone producing field in Utah.

Virtus Oil and Gas Corp.

3/15/2016 Colorado Precast Concrete, Inc.

Construction Materials Colorado Precast Concrete, Inc. manufactures precast concrete products.

Oldcastle Precast, Inc.

3/7/2016 Lithko Contracting, Inc. Construction Materials Lithko Contracting, Inc. provides concrete construction services in the United States.

The Pritzker Organization

3/7/2016 Service Experts LLC Building Products Distribution

Service Experts LLC sells, repairs, and installs heating, ventilation, and air conditioning equipment for home and commercial applications in North America.

EnerCare Solutions Inc.

3/7/2016 3i Supply Company Building Products Distribution

3i Supply Company distributes industrial and commercial insulation products.

Distribution International, Inc.

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M&A T

RANSACTIONS

Announced

2/29/2016 Greco Bros. Ready Mix Concrete Co., Inc.

Construction Materials Greco Bros. manufactures and markets ready-mixed concrete. Ferrara Brothers Building Materials Corp. 2/29/2016 Parkland Plastics, Inc. Building Products Parkland Plastics, Inc. manufactures polymer-based architectural

panels.

Patrick Industries Inc.

2/29/2016 Eurobloq Inc. Construction Materials Eurobloq Inc. manufactures concrete. Brampton Brick Ltd.

2/25/2016 Royal Group Window & Door Profiles Business, (nka: ENERGI Fenestration)

Building Products Comprises window and door profiles manufacturing activities. OpenGate Capital, LLC

2/24/2016 InterWrap, Inc. Building Products InterWrap, Inc. manufactures coated woven packaging products and multi-layer laminated reinforced plastic substrates.

Owens Corning

2/23/2016 Boxley Materials Company, Inc.

Construction Materials Boxley Materials Company, Inc. produces and supplies various crushed limestone, granite, and sandstone to contractors and road builders.

2/23/2016 Super-Krete International, Inc.

Construction Materials Super-Krete International, Inc. manufactures concrete repair products and restoration materials used to repair, waterproof, restore, enhance, and protect concrete installations worldwide.

Arizona Polymer Flooring, Inc.

2/23/2016 Deceuninck North America, LLC, Deck and Rail Business

Building Products Deceuninck North America, LLC designs, manufactures, and distributes decking and railing products.

The Tapco Group

2/18/2016 Noble Company Building Products Noble Company manufactures building products for applications in tile, plumbing, heating and cooling, and fire sprinkler industries.

Federal Process Corporation 2/16/2016 USA Fastener Group, Inc. Building Products USA Fastener Group, Inc. manufactures and markets fasteners, and

provides machining services for various industries in the United States.

MW Industries, Inc.

2/12/2016 Opta Minerals Inc. Construction Materials Opta Minerals Inc. manufactures, recycles, and distributes industrial minerals, silica-free abrasives, and specialty sands and other products and services in Canada and internationally.

Speyside Equity LLC

2/12/2016 Nationwide Industries Inc. Building Products Nationwide Industries Inc. designs and manufactures hardware products and components for the building materials industry.

Argosy Capital

2/11/2016 Crystal Sands Construction Materials Crystal Sands owns and operates several silica mining properties (metallic and non-metallic) throughout Utah.

Aim Exploration Inc.

2/11/2016 American Materials Company, LLC

Construction Materials American Materials Company, LLC manufactures and markets sand and gravel to customers in North and South Carolina.

2/10/2016 AAA Valley Gravel, LLC Construction Materials AAA Valley Gravel, LLC owns and operates rock, sand, and asphalt pits for use in various applications including driveways, parking lots, roads, and tank bedding.

Ahtna, Incorporated

2/8/2016 Cumberland Wood Products, Inc.

Building Products Cumberland Wood Products, Inc. manufactures plywood and wooden reels, and wood crates that assist in packing spools such as wire, cable, rope, hose, and strip stock.

Rugby IPD Corp.

2/2/2016 Robert N. Karpp Company, Inc.

Karpp is one of the largest drywall specialty suppliers in New England serving select regions of Massachusetts and surrounding states through its three distribution centers and fleet of boom trucks.

GMS Inc.

2/2/2016 Cascade Windows, Inc. Building Products Cascade Windows, Inc. designs, manufactures, and sells vinyl windows and sliding glass doors for homeowners, builders, and architects in the Western United States.

CenterOak Partners LLC

2/1/2016 Sherman-Dixie Concrete Industries, Inc.

Building Products Sherman-Dixie Concrete Industries, Inc. manufactures and markets precast concrete pipes and stormwater products, and sanitary civil engineered systems.

Forterra Building Products

1/25/2016 Quality Aluminum Products, Inc.

Building Products Quality Aluminum Products manufactures sheet metalwork, specializing in siding for the residential and commercial construction markets.

Blackford Capital LLC; Michigan Prosperity Fund

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R

EPRESENTATIVE

B

UILDING

P

RODUCTS

& M

ATERIALS

T

RANSACTIONS

Select Atlanta, Georgia aggregates assets of LaFarge SA have been acquired

by has been acquired by

has purchased certain assets of

a subsidiary of

A Private Investor Group

a subsidiary of

has sold certain assets to

a division of

have been acquired by The Wichita, Kansas aggregates, concrete,

asphalt, and paving assets of LaFarge SA

has completed a balance sheet restructuring and recapitalization transaction Strategic Industries, LLC Private Investors has been acquired by

a division of

portfolio companies of

has been acquired by Dyad Partners

a division of

a subsidiary of

a division of

&

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Energy, Power

& Infrastructure

Industrials

Healthcare

& Life Sciences

Transportation

& Logistics

Aerospace, Defense

& Government

Services

Business

Services

Building Products

& Materials

Technology,

Media & Telecom

Specialty

Distribution

Consumer

H

ARRIS

W

ILLIAMS

& C

O

. O

FFICE

L

OCATIONS

UNITED STATES

EUROPE

Boston

Two International Place

24th Floor

Boston, Massachusetts 02110

Phone: +1 (617) 482-7501

Cleveland

1900 East 9th Street

20th Floor

Cleveland, Ohio 44114

Phone: +1 (216) 689-2400

Minneapolis

222 South 9th Street

Suite 3350

Minneapolis, Minnesota 55402

Phone: +1 (612) 359-2700

Richmond (Headquarters)

1001 Haxall Point

9th Floor

Richmond, Virginia 23219

Phone: +1 (804) 648-0072

San Francisco

575 Market Street

31st Floor

San Francisco, California 94105

Phone: +1 (415) 288-4260

Frankfurt

Bockenheimer Landstrasse 33-35

60325 Frankfurt

Germany

Phone: +49 069 3650638 00

London

63 Brook Street

London W1K 4HS, England

Phone: +44 (0) 20 7518 8900

NETWORK OFFICES

Beijing

Hong Kong

Mumbai

New Delhi

Shanghai

Building Products

& Materials

Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities.

Our clients benefit from our deep-sector experience, integrated industry intelligence, and

collaboration across the firm, and our commitment to learning what makes them unique. For more

information, visit our website.

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ARRIS

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ILLIAMS

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Bloomberg

Builder Online

Building Design & Construction

Building-Products.com

Bureau of Economic Analysis

Construction Dive

Dodge Data & Analytics

Eurostat

FactSet

Floor Daily

Freedonia

Global Industry Analysts

IBIS

NAHB

National Association of Realtors

New York Times

PNC Economic Outlook

RealtyTrac

S&P Leveraged Commentary & Data

The Wall Street Journal

Thomson Financial – SDC Database

Thomson Reuters

U.S. Census Bureau

DISCLOSURES

SOURCES

Harris Williams & Co. (www.harriswilliams.com) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide.

The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services.

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS.

The information and views contained in this report were prepared by Harris Williams & Co. (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable, but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those

companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The financial instruments discussed in this report may not be suitable for all investors, and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.

BUILDING PRODUCTS & MATERIALS

www.harriswilliams.com

B

UILDING

P

RODUCTS

& M

ATERIALS

G

ROUP

O

VERVIEW

CONTENTS

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WHAT WE’RE READING

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PUBLIC MARKETS

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PUBLIC COMPARABLES

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M&A ACTIVITY

CONTACTS

Mike Hogan

Managing Director

[email protected]

+1 (804) 915-0104

Ryan Nelson

Managing Director

[email protected]

+1 (804) 915-0121

Trey Packard

Vice President

[email protected]

+1 (804) 887-6016

INTRODUCTION

Harris Williams & Co. is pleased to present our Building Products and Materials

Industry Update for June 2016. This report provides commentary and analysis on

current capital market trends and merger and acquisition dynamics within the

global building products and materials industry.

We hope you find this edition helpful and encourage you to contact us directly if

you would like to discuss our perspective on current industry trends and M&A

opportunities or our relevant industry experience.

OUR PRACTICE

Harris Williams & Co. is a leading advisor to the building products and materials

industry. Our significant experience covers a broad range of end markets,

industries, and business models.

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Construction

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