The distribution sector showed promising momentum in Q3, with the composite share performance of leading publicly traded companies rebounding towards pre-March 2022 highs. Notably, the building products distribution segment maintained its position as one of the top three most active categories in the space. The building products subsector remains highly fragmented, fueling acquisitions. Recent acquisitions have primarily focused on either:

• Value-added service expansion efforts, as seen by Beacon's acquisition of Chicago Metal Supply or, Whitecaps acquisition of Dayton.
• Targeting geographic expansion to drive competitive advantage, as illustrated by Builders FirstSource's move to bolster regional capabilities through the acquisition of Wyoming Millwork Co.