YANG established a subsidiary to invest in a digital, tech-forward building products distribution platform for the UK & Scandinavian markets. The new company BPX (short for Building Products Exchange) is expected to begin initial acquisitions in Q4 of 2024. The firm will consider bolt-ons in industrial, infrastructure and residential end markets, depending on the opportunity.

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Market Drivers

Building products distribution in Europe is defined by many fragmented small and medium companies in a relatively large industry. Currently, YANG estimates there to be circa 9,000 acquisition targets in Europe, including over 3,000 targets in initial focus market: UK, Ireland and Scandinavia.

In addition, the construction supply industry is growing at around 7% YoY, corresponding to the housing shortage in focus markets. This growth is expected to accelerate as the industry digitizes (primarily with e-commerce adoption growth).
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The Opportunity

YANG’s value proposition is based on the technological shifts that will transform the industry in the coming decade. The building products market is still lacking many of the technology applications present in adjacent industries such as logistics or manufacturing.

With BPX, YANG will innovate across the value chain with a goal to reduce costs, maximize efficiency and speed in the distribution cycle. This includes a 3D-based e-commerce platform for homebuilders, machine learning software solutions for price optimization, data-driven routing for logistics and automation in distribution centres & warehouses.