Home sales are on the rise, which is building up demand for construction product suppliers. According to the Department of Commerce, new U.S. home sales climbed to 495,000 units in October 2015 from 447,000 in September. Both strategic buyers and private equity firms have been going after construction targets.
Recently, middle-market PE firm Wynnchurch Capital said it will invest in privately-held Gypsum Technologies Inc. The target makes machines and tools that are used to install wallboards. Wynnchurch partner Frank Hayes says, “the near- and long- term fundamentals are quite attractive” in the building products industry.