Megadeals Disguise LBM M&A's Slow Pace in 2025
- Craig Webb
- 2 hours ago
- 2 min read
Updated: 12 minutes ago
The map below would lead you to think this has been a robust year for dealmaking in construction supply. But that's if you only care about the number of locations acquired--and indeed, the 1,762 facilities that changed hands this year dwarfs anything since at least 2018. But viewed in two other ways, the picture changes dramatically.
The table at right shows that the actual number of deals recorded by Webb Analytics year to date is as little as half what we've seen in any of the four previous years. And the number of buyers is dramatically below any other year since 2021.
The difference comes largely through volume. Since 2018, the largest number of locations purchased per transaction was 7.4, recorded back in 2020. So far, this year, the average is 19.2 locations per deal. Among the reasons why is QXO's purchase of Beacon Building Products (over 650 locations), The Home Depot/SRS Distribution's acquisition of GMS (over 425 locations), and Lowe's takeover of Foundation Building Materials (about 365 locations). Take away those deals and you end up with just over 320 locations purchased in 89 deals. That's 3.6 yards per deal--pretty typical for the past decade.
Here's how the map looked as of Nov. 10:
Among recent actions:
Builders FirstSource purchased Lengefeld Lumber in Temple, TX, strengthening its service on the I-35 corridor between Waco and Austin.
ProTec Panel and Truss Manufacturing bought Barry County Lumber of Hastings, MI.
Massachusetts-based Koopman Lumber expanded into Connecticut by acquiring Lyon & Billard Lumber, which has brances in Berlin, Cheshire, East Hampton, and Meriden.
Decks & Docks opened new stores in Rogers, AR, and Greensboro, NC.
84 Lumber opened a truss plant in La Mirada, CA.
Franklin Building Supply celebrated the opening of a new store in Idaho Falls, ID.
Dallas Cedar opened a second branch in Arlington, TX.
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