Rock Products

AUG 2017

Rock Products is the aggregates industry's leading source for market analysis and technology solutions, delivering critical content focusing on aggregates-processing equipment; operational efficiencies; management best practices; comprehensive market

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70 • ROCK products • August 2017 www.rockproducts.com Aggregates Industry Almanac Agg Industry Market Report Aggregates Industry Market Report Market Trends Including Mergers and Acquisitions, Aggregate Production and Pricing. By Brian Krehbiel W ith regard to publicly traded companies, average EBITDA margins were down from 20.0 percent to 19.2 percent from the prior quarter but average EBITDA multiples increased from 12.3x to 12.6x, likely due to the dip in margins inflating multiples. On May 8, 2017, the Australian company, Boral Limited, completed the previously announced acquisition of Headwaters Inc. (No affiliation with Headwaters MB) for an aggregate enterprise value of $2.6 billion. Headwaters Inc. was delisted from the New York Stock Exchange as of the date of closing. Public Valuations Figure 1 includes the constituents of Headwaters Aggregates Materials Index as of 3/31/2017. Source: FactSet Aggregates Performance 2017 YTD Total Returns (Figure 3): • Aggregate Materials Index – (4.1%) • S&P 500 – 9.7% • Dow Jones Industrial Average – 7.2% While publicly traded aggregates producers continue to expe- rience top line growth, investors have been disappointed in the short-term delays to President Trump's infrastructure plans pushing growth expectations into 2018 and beyond. Average margins have also dipped slightly in 2017.

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