Aggregates Industry M&A Activity Strong In 2021, Continued Optimism For 2022
Capstone Partners released its January 2022 Rock Products Sector Update, reporting that healthy construction backlogs, increased demand visibility, and strengthening aggregates pricing contributed to a robust year in the Aggregates sector in 2021. Disciplined cost control has been key for sector participants as they look to grow earnings and maintain margins amid elevated energy costs and labor shortages.
Rising inflation and the prospect of multiple interest rates increases have led to bouts of volatility in equity markets in early 2022. Capstone’s Aggregates Materials Index (AMI) has demonstrated healthy performance over the past year, with returns amounting to +22.1%, outpacing the Dow Jones Industrial Average and modestly trailing the S&P 500.
Also included in this report:
- How public companies in the Aggregates sector have performed through 2021 amid elevated demand but also mounting inflationary pressures and labor shortages.
- Why merger and acquisition (M&A) activity improved in 2021 and the drivers of premium purchase multiples.
- Historic and recent data through Q3 2021 detailing aggregate materials volume and pricing levels.
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