ESG considerations play a key role in the strategies of the building materials sector companies

Building Materials Spot On

Environmental, social and governance (ESG) considerations have long played a role in the building materials industry. However, where once they were regarded by many as nothing more than a regulatory burden, this tide has changed and ESG now plays a key role in the strategies of many companies, as our latest Building Materials Spot On reports. We look at the drivers behind this change of heart, as well as the opportunities that it is creating.

ESG within the built environment sector has changed from being seen as a compliance-led regulatory burden to being core for companies’ strategies within the sector. This is driven by customer demand, investor demand and consumer demand. In our view, this has irrevocably changed the landscape of the industry, making companies with strong ESG credentials highly attractive investment propositions and resulting in higher valuation metrics. BRIAN LIVINGSTON, BUILDING MATERIALS SPECIALIST, OAKLINS, LONDON, UK

In addition, we consider the impact of this new perspective on M&A within the building materials sector, summarize recent M&A activity, and provide an overview of valuations and valuation trends related to a range of selected public companies.

Our case study in this edition examines the acquisition of VHZ Group, a market leader in uPVC windows and doors, by Gilde Equity Management and VHZ Group’s management, where Oaklins’ team in the Netherlands acted as the exclusive sell-side advisor.

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