麦肯锡 -建筑材料行业：把握取得超额业绩的关键 Building materials Understanding the keys to outperformance

January2026

Mckunsey

&company

Engineering,Construction&BuildingMaterialsPractice

Buildingmaterials:

Understandingthekeystooutperformance

Ourexperienceandnewanalysissuggestahandfuloffactorsenablethe

companiesthathaveoutperformedtherestofthebuildingmaterialsindustrysince2015.

ThisarticleisacollaborativeeffortbyAlexAbdelnour,ImkeMattik,JoseLuisBlanco,andPatrickSchulze,withPeeyushKarnani,representingviewsfromMcKinsey’sEngineering,Construction&BuildingMaterialsPractice.

Keyinsights

—Executionoverexposure:IntrasegmentROICspreadexceedsintersegmentspread,soTSRisdrivenbyacompany’soperatingmodelandcapitaldeployment,nottheendmarket.

—Scalehasshiftedfromplantstoprocurementandpricingtechnology,withthescalepremiumnowanchoredbydatavisibility,digitalquoting,anddynamicpricing.

—Thereisgeographyasymmetry;NorthAmericanexposurecorrelateswithhigherTSR,but

Europeunderperformslargelywhenplayersaresubscaleorfragmented.PremiumEuropeanmodelsstillshowsignsofsuccess.

Thepastdecadehascreatedsignificantchallengesanduncertaintyforthebuildingmaterialsindustry.TheCOVID-19pandemicfundamentallyalteredtheentireshort-termsupply-and-

demandrelationship,while

supplychainissues,laborshortages,andrawmaterialsprice

volatility

havesubsequentlycontinuedtodisrupttheindustry.1

Yettherewereoutperformersinthepastdecade.WhileforthcomingMcKinseyworkwilllookatcurrenttrendswithinthesectorandthetraitslikelytodeterminewhichcompanieswillthriveinthenextdecade,thisarticleusesnewdatatoanswertwocriticalquestions:Howhasthe

industryperformedfinanciallysince2015?Andwhatsuccessfactorssupportedtop-performingcompaniesduringthatperiod?

Ouranalysis,whichfocusesonthefinancialperformanceof102publiclylistedcompaniesin

NorthAmericaandEuropebetween2015and2024,findsthebuildingmaterialsindustryasawholehasperformedstrongly.ValuecreationmeasuredbyTSRhasbeensolid,withaCAGRof12to13percentforthedecade.Muchofthissuccesswasdrivenbyanincreasingnumberof

newbuildsandrenovationsandhigherpricesaftersupplychaindisruptionsin2021.

Twopatternsstandout.First,dispersionwithinproductcategoriesmeaningfullyexceeds

dispersionbetweencategories,underscoringthatoperatingmodelandcapitaldeployment

choicesleadtovaluecreationratherthanjust“whatyousell.”Afterall,thebuildingmaterials

marketconsistsofthousandsofproductcategories,spanningrawmaterials,finisheditems,andeverythinginbetween(formoreonourapproachtoanalyzingthenuancesoffinancial

performanceacrosscategories,seesidebar,“Researchmethodologyandsegmentoverview”).Forexample,eachlightmaterialssubsegmentcontainsatleastonecompanydeliveringaROICtenpercentagepointshigherthanthepeermedian.Performancegapshavealsoincreasedovertime:CompaniesinthetopTSRquartileofourdataset—whichincludescompaniesfromnineofourtensubsegments(ninelightmaterialssubsegmentsandheavymaterials)—sawROIC

increaseinthepastdecade,whilebottom-quartileplayerssawadecline.

1“

Buildingproductsinthedigitalage:It’shardto‘getsmart

’,”McKinsey,June6,2022.

Buildingmaterials:Understandingthekeystooutperformance2

Buildingmaterials:Understandingthekeystooutperformance3

Researchmethodologyandsegmentoverview

Ouraimwiththisresearchistoprovideinsightsintothelittle-studiedquestionofhowthebuildingmaterialsindustryhasperformedfinanciallyinrecentyears.

Thedata

Wegatheredrelevantfinancialandotherinformationforpubliclylistedcompaniesthathavebotha

majorityfocusonbuildingmaterialsandareheadquartered—oramassthemajorityoftheirrevenue

from—NorthAmericaorEurope.Thefinaldatasetcontainsinformationfor102companies.Whilethisdatasetisnotfullyrepresentativeofallcompaniesintheindustry,becauseithasageographicfocusandexcludesthemanycompaniesthatareownedbyprivateindividualsorprivateequityfirms,itis

largeenoughandbroadenoughtoprovidehelpfullessonsandinsightsontheindustryasawhole.

Constructionoffinancialquartiles

Wesplitthese102companiesintoquartilesbasedonTSRperformancebetween2015and2024.Wealsocalculatedotherfinancialmetrics—includingROICandrevenuegrowth—foreachofthese

quartiles.

Industrysegmentation

Overall,17companiesinthedatasethadafocusontheheavybuildingmaterialssegmentand85onthelightbuildingmaterialssegment(buildingproducts).Those85werefurthersplitacrossnine

subsegmentsbasedonproductcategories.Samplesizesacrosstheresultingtensubsegmentsvaryfromtwo(fortheconstructionchemicalssubsegment)to19(forthebuildingtechnology,electrical,

andlightingsubsegment).Analyseswithinthisarticlegivepercentageswithinsegmentsforeaseof

comparison,butcautionshouldbeusedinmakinganyextrapolationsforsegmentswithlowersamplesizes.

Thefollowingoverviewofbuildingmaterialssubsegmentsincludestypicalproductsforeachaswellasthenumberofcompaniesoperatingwithinthescopeofourstudy:

—Buildingtechnology,electrical,andlighting(19companies),includingHVAC,smartthermostats,LEDlighting,fireprotection,energysolutions,buildingautomation,andconstructionsoftware

—Windowsanddoors(12companies),includingresidentialandcommercialwindows,slidingorentrydoors,framesandrelatedhardware,and(smart)lockingsystems

—Woodconstruction(11companies),includingengineeredwood,timberframing,woodpanels,laminatedveneerlumber,cross-laminatedtimber,andplywood

—Distribution(tencompanies),includingbuildingmaterialswholesalersandconstructionsupplydistributors

—Interiorandflooring(eightcompanies),includingceramictiles,hardwoodflooring,carpets,laminateflooring,decks,railing,stairs,surfaces,paints,anddecorativepaintsandflooring

Buildingmaterials:Understandingthekeystooutperformance4

—Roofingandinsulation(eightcompanies),includingroofingshingles,insulationmaterials,waterproofingmembranes,fiberglassinsulation,andsprayfoaminsulation

—Walls,facades,andceilings(eightcompanies),includingdrywall,exteriorcladding,ceilingtiles,gypsumboard,curtainwallsystems,andacousticceilingpanels

—Sanitaryandplumbing(sevencompanies),includingplumbingfixtures,pipes,fittings,bathroomaccessories,faucets,toilets,and(small)waterheaters

—Constructionchemicals(twocompanies),includingconcreteadmixtures,waterproofingchemicals,sealants,adhesives,concreteadditives,epoxycoatings,andsiliconesealants

—Heavymaterials(17companies),includingcement,concrete,aggregates,asphalt,lime,bricks,tiles,andsteel

Successfactoranalysis

Ouranalysislookedatmultiplepossibledriversoffinancialperformance,includingR&Dspend,SG&A,cashsourcesanduses,M&Aactivity,scale,geographicfocus,andothers.Quantitativemetricsrelatedtothosepotentialdriverswereextractedfromcompanyfinancialstatementsandotherpublicly

availabledocuments.Wethenlookedforrelationshipsbetweenthosemetricsandatop-quartilefinancialperformance.“Successfactors”aredefinedasthosemetricsforwhichwefounda

meaningfulpositiverelationship.

Second,thescalepremiumhasevolved:Theresearchshowsleadersareseeingsuccessfrom

scaleviaprocurementleverage,datavisibility,anddisciplinedpricingsystemsratherthansolelythroughmanufacturingfootprint.Understanding“howtoplay”ismoreimportantthan“wheretoplay.”

Together,thesedynamicshelpexplainwhysomecompaniescompoundTSRdespitesimilar

categoryexposure.Thecompany-levelfactorsmostpredictiveoftop-quartilefinancial

performance—whichwerefertoassuccessfactors—relatetoscaleandthelevelofM&A

activity,thedegreeoffocusonproductsegments,andthegeographicaldistributionofrevenue.Thisarticleconcludeswithananalysisofhowthreecompaniesenhancedtheirfinancial

performancebypursuingcontext-specificcombinationsofthesesuccessfactors.

Buildingmaterials:Understandingthekeystooutperformance5

Understandingtheindustry’sfinancialperformance

Whilethebuildingmaterialsindustryasawholehasperformedstronglyoverthepastdecade,thepicturebecomesmorenuancedwhenlookingatvariationbycompanyand—toalesser

extent—segment.

Company-levelperformancevariessignificantly—andtherangeiswidening

Whileabsolutereturnswerehealthy,theinvestorstoryisoneofdispersionandwidening

spread.WithineachsubsegmentweobservedabroadROICrange,oftenofmorethan20

percentagepointsbetweenlowerandupperquartiles(Exhibit1).Thisintrasegmentgap

outstripsmostintersegmentdifferences,implyingthatexecutionchoices—pricinggovernance,SG&Aefficiency,working-capitaldiscipline,andreinvestmentcadence—werethedominant

differentiators.Performancegapshavealsoincreasedoverthedecadeacrossarangeofmetrics:

—ROIC.ThechangeinROICbetween2015and2024ofcompaniesinthetopquartileofourdatasetwas16percentagepointshighercomparedwiththoseinthebottomquartile(12

percentcomparedwith–4percent,respectively).

—Revenuegrowth.Top-quartileplayerssawrevenuegrowataCAGRonepercentagepointhigherthanthemedianforcompaniesintheirsubsegmentandfivepercentagepoints

higherthanbottom-quartileplayers.

—Profitmargin.Theprofitmarginoftop-quartileplayerswas6.2percentagepointshigher

thanthoseinthebottomquartile(a3.5percentannualincreaseinprofitmarginscomparedwitha2.7percentdecrease).

Differencesinperformanceacrosssubsegmentsweregenerallycomparativelysmall

Heavyandlightmaterialssegmentsdifferslightlyinfinancialperformance.Whilepublic

building-materialscompaniesrecordedaverageannualrevenuegrowthof6percentfrom2015to2022,revenuedivergedbetweenheavyandlightmaterialsfrom2022to2024.Higher

interestratesandincreasingconstructioncosts(whichprimarilyaffectlightmaterialsplayers,giventhestabilityofpublicfundingforheavyinfrastructureprojects)pushedaveragerevenueslightlylowerforlightmaterialsplayers,whilerevenueforheavymaterialsincreased.

ROICalsodeclinedforlightmaterialscompaniesandimprovedforheavymaterialscompanies,althoughahigherbaselineROICforlightmaterialscompaniesindicatesaconvergencein

absoluteperformance.From2022to2024,ROICforlightmaterialscompaniesdecreasedbyfourpercentagepointsfromapproximately24to20percent.ROICforheavymaterials

companiesincreasedbytwopercentagepoints,from12to14percent.(Thenextarticleinthisserieswilllookattheimpactofexternaltrendsandhowtheyaffectvaluegenerationinthe

industry.)

Exhibit1

Buildingmaterials:Understandingthekeystooutperformance6

TheTSROftop-quartilecompaniesdramaticallyexceedstheTSROfthoseinthebottomquartile.

perspectiveperquartile,2015-24

Deltabetweenyear2015and2024.

2perannum.

Mckinsey&company

Whenlookingacrossalltensubsegments,however,whatismoststrikingistherangein

performancewithineach.Therearetop-andbottom-quartileperformerspresentinnineofthetensegments,thoughtherelativesharesbysubsegmentvary(Exhibit2).

Thissuggestsdifferencesinfinancialperformanceacrosssubsegmentsaregenerally

significantlysmallerthandifferenceswithinsubsegments.ROICvariationwithinsubsegments

suchastheinterquartilerange—thedifferencebetweenthelowerboundofthefirstquartileandtheupperboundofthefourthquartile—isoftenmorethan20percentagepoints(Exhibit3).

Exhibit2

Buildingmaterials:Understandingthekeystooutperformance7

Allbuildingmaterialssegmentsincludearangeoftopperformers.Numberofcompaniesbyquartileandsubsegmenty2015-24y%

Heavymaterials

0-1920-32≥33

Quartile1

Quartile2

Quartile3

Quartile4

Buildingtechnology,

electrical,andlighting

woodconstruction

sanitaryandplumbing

windowsanddoors

walls,facades,andceilings

13

13

Distribution

nteriorandflooring

Roofingandinsulation

13

constructionchemical

Mckinsey&company

Threesuccessfactorsofindustryleaders

Subsegmentshavenotbeenastrongpredictoroffinancialsuccessinrecentyearsforbuildingmaterialscompanies.Nordoesthestrategyandcommercialmodeloftop-performing

companiesconformtoanyonearchetype:Somecompaniesachievedsuccessthroughstrongertop-linegrowth,whileothersprioritizedmarginexpansion.Strategiesvariedsignificantly,evenamongcompaniesthatfocusedonimprovingmargins.Certainplayersbuiltadifferentiated

brand,enablingthemtocommandhighergrossmargins;others,withmore-commoditized

portfoliosandinherentlylowergrossmargins,compensatedthroughleanerSG&Astructures,ultimatelymaintainingstrongEBITDAprofiles.

Exhibit3

Buildingmaterials:Understandingthekeystooutperformance8

Allbuildingmaterialssegmentsincludearangeoftopperformers.

57

62

49

82

46

48

55

32

ROIC(excludinggoodwill)bysubsegment,2015-24,%coefficientofvariation△Mean

35

40

20

△

■

31

29

25

△

21

21

△

△

Building

wood

sanitaryand

windowsand

walls,

DistributionInteriorand

Roofingand

Heavy

subsegment

technology,

electrical,

andlighting2

construction2

plumbing

doors2

facades,andceilings

flooring

insulation

materials

3average

ROIC(excludinggoodwill)byquartileandsubsegment,2015-24,%

Note:Figuresmaynotsumto100%,becauseofrounding.

'Measuredasstandarddeviationdividedbythemeanofthesample.

2Excludestopandbottomobservationbecauseofextremeoutliers.

3Averageofthesegments'medianyearlyobservation.

Mckinsey&company

Onecommonalityamonghigh-performingcompaniesistheirabilitytoplaytotheirstrengths

withdisciplineandconsistency.Inourexperience,theirsuperiorabilitytoexecuteagainsttheirchosenstrategyhastypicallybeenunderpinnedbystrongcapitalallocation,operationalrigor,andmodernmanagementpractices.Butarethereothercommonfactorsbeyondaclear

strategyandstrongabilitytoexecute?

Buildingmaterials:Understandingthekeystooutperformance9

WhenweexaminedtheshareofTSRvarianceassociatedwithscaleandM&Aintensity,productfocus,andrevenuegeography,wefoundacombinationoffactorsexplainasubstantialportionofcross-companyTSRoutcomes.Inparticular,scaleandadjacentbolt-onacquisitionsshowthestrongestassociationwithsustainedROICuplift,productfocuscorrelateswithhighergross

marginresilience,andgeographyinfluencescyclicalityandpricingpower.Werecommend

interpretingtheseaspractical“wheretolook”flagsfordiligenceandcapitalallocation,notasdeterministicrules.Thislistofsuccessfactorsisnotexhaustive,sincewewereonlyableto

assessthosefactorsforwhichwecouldgetconsistentquantitativedata.

ScaleandthelevelofM&Aactivity

Companieswithmorethan$5billioninrevenuein2024weremoreprofitable,onaverage,thansmallerones,makingup50percentofourtop-quartilecompanies(Exhibit4).Onaverage,largecompanies—definedasthosewithrevenueofmorethan$1billionayear—achievedbotha

greaterincreaseinROICandfasterrevenuegrowththantheirsmallerpeers.

Forinvestors,scalepaysthroughthreecashengines:procurementleverageandfreightor

networkoptimizationthathardengrossmargin;commercialexcellencewithhighprice

realization(suchasdigitalquoting,pricecorridors,andmixmanagement);andlowerSG&Aasapercentofsales,whichisespeciallyrelevantinthebuildingmaterialindustrygivenitscomplexstakeholderlandscapespanninginstallers,architects,distributors,consumers,andothers.

Importantly,higherM&Aactivitytranslatestovalueonlywhenpairedwithreturndisciplinesuchaspresethurdlerates,rapidbenefitrealizationfromM&A(suchasthroughprocurementorSKUharmonization),andaclearpostcloseroleforcentersofexcellence.Inourdataset,the

strongestperformerscombinedmoderate-to-highdealvelocitywithstrictreinvestmenthygiene,whileserialacquirerswithoutintegrationrigorunderperformed,despitesimilarspending.

Giventhatmergersandtakeoversareoneroutetoscale,itisnotsurprisingthatouranalysis

identifiedaclearM&Astrategyasonesuccessfactorforbuildingmaterialsplayers(Exhibit5).CompanieswithahighlevelofM&Aintensity—definedascompletingmorethan18deals

between2015and2024—hadanaverageTSRof13percentforthatperiod,somethreetofivepercentagepointshigherthanpeerswithlowerM&Aintensity.

Ofcourse,theextenttowhichanyindividualdealislikelytocontributetoastrongfinancial

performance(ortheconverse)dependsonabroadarrayofcontext-specificfactors.Inour

experience,M&Adealsinthebuildingmaterialsindustryaremostlikelytocontributetostrongfinancialperformancewhenfocusedonimprovingcompetitivepositioningandstrategic

integration.Forinstance,aproactivefocusonacquisitionswithinthesamesubsegmentor

closelyrelatedsubsegments—suchasadistributoracquiringawoodconstruction

company—canbeapromisingstrategy.EffectiveM&Agenerallyalsocomplementsathoughtful

Exhibit4

Buildingmaterials:Understandingthekeystooutperformance10

Largercompaniesgrewmoreprofitablythansmallerpeersfrom2015to2024.

1percentagepoints.

Mckinsey&company

organicgrowthstrategyinkeymarketsandmaybelesslikelytobesuccessfulwhenuseddefensively,evenwhenaimedatensuringstableaccesstorawmaterials.

Capitalallocationseparatedthetopquartilefromothers.Thedatashowsthatsuccessful

companiesrecycledcashwithabalancedmixoftargetedbolt-onacquisitions,organicprojectswithhighinternalratesofreturn(suchasunblockingcapacityandautomation),andconsistentcapitalreturnswhenincrementalROICfellbelowsetthresholds.Companiesinlowerquartilestendedtochasevolumegrowthviabroaddiversificationoroverpayingforassetslacking

procurementorchannelsynergies.Investorsshouldwatchfordisclosedhurdleframeworks,

buybackthrough-cycleconsistency,andpostmergeroperatingcadenceasleadingindicators.

Thedegreeoffocusonproductsegments

Arelativelyhighdegreeofproductspecializationisassociatedwithahigherprobabilityof

financialsuccess.OuranalysisfindsthattheaverageTSRofcompaniesactiveinjustone

subsegmentandcloseadjacenciesissixpercentagepointshigherthancompaniesactiveinmultiplesubsegmentsorthatarealsoactiveoutsidethebuildingmaterialsmarket.2

2Heavymaterialscompanieswerenotconsidered.

Exhibit5

Buildingmaterials:Understandingthekeystooutperformance11

Between2015and2024ycompanieswithhigherlevelsofM&AactivitygeneratedgreaterreturnsthantheirpeerswithlowerM&Aintensity.

shareofM&Adealsbysubsegment,%(n=1,058)

Total

Heavy

materials

Building

technology,

electrical,andlighting

~80%

ofall

deals

Distribution

windowsanddoors

Roofingandinsulation

other

shareofcompaniesbyM&Aintensity,%(n=102)

AverageTSR,2%perannum

13

veryhigh(>18deals)

High

(10-18deals)

Medium

(5-9deals)

Low

(<5deals)

Note:Figuresmaynotsumto100%,becauseofrounding.

M&Afor2015to2024.

2CAGRfor2015to2024·

Mckinsey&company

Specializationwinswhenitreinforcesacapabilityflywheel:Narrowerportfoliosenabledeeperloyaltywithchannelpartners,fasterSKUrationalization,andtighterprice-packarchitecture.3Diversificationaddsvalueonlywhenadjacenciesshareprocurementpools,manufacturing

platforms,orroutestomarket.Otherwise,complexityincreasesSG&Aanderodespricing

realization.Onepracticalquestioninvestorscanasktoassessspecializationisifadjacenciesshareatleasttwoofthesethreeattributes:supplierbase,productionprocess,orchannel.

Thegeographicaldistributionofrevenue

Geographyisaheadwindonlywhencoupledwithasubscalestructureandfootprint.Our

analysisshowsacorrelationbetweengeographicdistributionofrevenueandafirst-quartile

financialperformance(Exhibit6).Buildingmaterialscompaniesinthefirstquartilehada

strongerpresenceinNorthAmerica,with76percentoftheirrevenuecomingfromthisregionin2024.CompaniesinthefourthquartilehadastrongerpresenceinEurope,with61percentof

theirrevenuescomingfromtheregionin2024.Inaddition,onlyfirst-quartileplayersincreased

3Inwhichcompaniesofferproductpackagesofdifferentsizesandthusatdifferentpricepoints.

Buildingmaterials:Understandingthekeystooutperformance12

theirrelativeaverageexposuretocountriesoutsideEuropeandNorthAmerica—includinggrowthmarketsinAsiaandLatinAmerica—from2015to2024.

Exhibit6

companieswithalargerNorthernAmericanpresenceoutperformthosewithlargerEuropeanfootprints.

NorthAmericaEuropether

shareofrevenuebyregionevolution(2015-24)andquartiles,'%

2024

-2.

Quartile1

\

+

2

-2·

32

3

-2.5

3

2024

Quartile4

2

shareofbuildingmaterialsrevenuebyuartile,'%

Quartile2

Quartile3

2024

2024

2015

2015

2015

2015

Note:Figuresmaynotsumto100%,becauseofrounding.

'Basedoncompanies'reportedrevenuesandgeographicalsegmentation.

Mckinsey&company

Buildingmaterials:Understandingthekeystooutperformance13

Onereasonforthedifferencesinthefinancialperformanceofbuildingmaterialscompaniesbygeographicfocusislikelytherelativeaggregateeconomicperformanceofthoseregionsinthetimeperiodexamined,withtheUnitedStates—andsomeemergingmarkets—growing

consistentlyfasterthanEuropebetween2015and2024.4Scalealsomattersmorefor

competitivenessthaninthepast,whichcancreatedisadvantagesgiven

theEuropeanmarketis

morefragmented

thantheUnitedStates’,andEurope’slargefirmshaveathirdlessrevenue

thanthoseintheUnitedStatesonasector-by-sectorbasis.5

Geographymattered,butasymmetrically.NorthAmericanexposurecorrelatedwithhigherTSR,givenstrongerdemandandfasterpriceresets.CompaniesinEuropehadweakerperformancemainlywhereportfoliosweresubscaleorspreadtoothinlyacrossfragmentedmarkets.Notably,scaledorpremium-positionedEuropeanplayers,oftenwithexportorsystemsbrands,outgrewpeers.

Examplesoftop-quartilefinancialperformance

Sowhatstrategiesdoleadingbuildingmaterialscompaniesemploy?Thissectionlooksatthreecompaniesthatsignificantlyimprovedtheirfinancialperformance—enteringthetop

quartile—duringthepastdecade,aswellasthedifferingcombinationsofsuccessfactorsthatenabledthemtodoso.

Growingorganicallythroughgeographicpositioningandaleanoperatingmodel

ANorthAmericandrainagecompanyincreaseditsTSReightfoldbetween2015and2024whilepushingitsmarketcapitalizationbeyond$9billion.M&Awasnotamajorfeatureofits

strategy—thecompanymadeonlyonemajoracquisition—anditinsteadfocusedonorganic

growth.Inparticular,thecompanyfocusedonpositioningitselfwithindomesticmarketswiththehighestratesofhomeconstructionandmigrationandonsecuringagreementswithtopUShomebuilders.ToboostmarginsandTSR,thecompanyalsomaintainedastrongfocusoncostmanagementandexecution,adoptingaleanoperatingmodel,increasingcapitalexpenditure

efficiency,andoptimizingprocurement.Thisorganic-first,geography-mixstrategypairedwithleanoperationsshowscompaniesdon’tneedserialM&Aifpricerealization,costcadence,andmarketmixarecompounding.

Boostingperformancewithanarrowerproductandgeographicfocus

AEuropeanHVACcompanysolditsbuildingsystemsdivisiontoconcentrateoncoreactivitiesthatsharedthesameinfrastructure,thenexitedapproximately40percentofthecountries

whereithadoperatedovertheprecedingthreeyears.ItthenpursuedatargetedM&Astrategy,acquiringcompetitorsincoreactivitieswhilecontinuingtodivestnoncoreandunderperformingpartsofthebusiness.Theresultwasamorefocusedportfoliothatacceleratedthecompany’sabilitytodel