M&A Insights For The Paving Sector

Overview

Fueled by infrastructure spending, sustainability demands, and evolving technology, the paving industry is entering a new phase of growth and consolidation in 2025. As operators seek efficiency and scale, M&A activity is accelerating.

This report explores emerging acquisition trends, the geographic reach of active buyers, and key insights shaping the industry’s future.

Top 5 Most Active Acquirers (2022-2024*)

Buyers in the Paving Industry have been active in the past 3 years. 2024 has been the most active year with 25 deals completed by 11 acquirers.

2023 was also quite active, as well with 17 deals
completed by 9 acquirers.

2022 was relatively quiet with only 10
deals completed by 5 acquirers. Of those 55 transactions, 38 were completed by the 5 most active buyers, listed on the left.

Geographic Distribution

Of the 25 transactions completed in 2024, the majority centered on companies headquartered in the Southeast, with 15 of the deal targets based in the region, though many of these firms maintained a nationwide operational footprint.

Anecdotally, several private equity
backed acquirers have reported a preference for deals in warmer climates where work is less-likely to be put on hold in the winter. We
are aware of a number of attempted but unsuccessful deals in the Southwest, with a number of quality operations holding out for higher valuations as their businesses continue to scale.

Tailwinds for the Industry

Infrastructure investment in the US has expanded in recent years with plenty of room to continue. The asphalt, concrete and paving industries have seen substantial investment spurred by recent
legislation which is likely to fuel ongoing activity.