2025 Mid Year Construction and Building Services Sector M&A Overview
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The Australian construction and building services sector continues to be one of the most active and resilient segments in the mergers and acquisitions (M&A) landscape, even as broader economic conditions remain challenging. The sector boasts a $1.08 trillion five-year construction pipeline and has maintained robust deal activity, driven by strategic acquisitions and ongoing market consolidation.
Strong Fundamentals and Investor Interest
The construction industry’s appeal lies in its essential role supporting Australia’s infrastructure, strong barriers to entry, and the ongoing infrastructure investment boom. Both domestic and international investors are actively pursuing opportunities, with global construction firms acquiring Australian businesses to strengthen their Asia-Pacific presence.
Noteworthy Transactions and Sector Trends
Major recent deals include Seven Group’s $6.7 billion acquisition of Boral, Saint-Gobain’s $4.3 billion purchase of CSR, and CRH’s $2.1 billion acquisition of Adbri. These high-profile transactions highlight the premium valuations achieved by established players with quality assets and strong market positions.
The mid-market segment (deals between $2 million and $1 billion) remains especially active, with strong buyer interest across specialised construction services, building materials manufacturing, and infrastructure contractors. Businesses in this segment typically command EBITDA multiples ranging from 5.4x to 11.9x, with larger, more specialised firms achieving premium valuations.
Key Drivers of M&A Activity
Infrastructure Investment: Ongoing government commitment to infrastructure projects is fuelling sustained demand and providing a foundation for growth and acquisition opportunities.
Supply Chain Integration: Companies are consolidating to secure supply chains, improve efficiencies, and strengthen market positions—especially in cement, concrete, and aggregates.
Technology and Capability: Acquisitions are increasingly focused on gaining specialised capabilities and technology-driven solutions to remain competitive in a rapidly evolving market.
Market Structure and Outlook
The sector remains highly fragmented, with significant opportunities for consolidation. Mid-market specialists and regional contractors make up the majority of the industry, offering ample scope for strategic roll-ups and platform building. The market is forecast to grow from $193.20 billion in 2025 to $256.14 billion by 2029, reflecting strong fundamentals and long-term growth prospects.
Read the Report
Click here to read the full report for a comprehensive analysis of recent transactions, sector trends, and key insights shaping the future of construction and building services M&A in Australia.
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