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Sika logo in Zurich
Photo: ARND WIEGMANN / REUTERS
The Swiss construction chemicals group Sika is taking over the German MBCC Group from the financial investor Lone Star Funds for 5.5 billion francs (around 5.2 billion euros).
"The takeover will complement and expand Sika's offerings in four of five core technologies and seven of eight target markets and strengthen the company's geographic presence," said the group from Baar in the canton of Zug.
With MBCC, the former construction chemicals business of the BASF Group, Sika is expanding its range of construction chemicals and industrial adhesives.
The Mannheim-based MBCC is expected to generate sales of around CHF 2.9 billion in the current year with around 7,500 employees at more than 130 locations.
Sika recently had annual sales of around eight billion francs.
For the newly formed company, Sika is forecasting sales of more than CHF 13 billion in 2023.
In addition, the merger is expected to generate synergies of CHF 160 to 180 million.
"Together we will strengthen our complementary range of products and services over the entire construction life cycle," said Sika boss Thomas Hasler.
The combined portfolio is intended to enable sustainable construction.
Sika already generates 70 percent of its sales with products that make a positive contribution to sustainability.
At the MBCC Group, more than 35 percent of the portfolio is particularly environmentally friendly.
"With the merger, Sika intends to generate 80 percent of its sales with products that make a positive contribution to sustainability," the group announced.
Share increases significantly
The takeover was well received by Sika investors.
The group's shares were up almost ten percent in the early afternoon.
Compared to other acquisitions in the industry, the purchase price is low, commented analyst Glynis Johnson of the Jefferies investment bank.
The company expects the transaction to close in the second half of 2022, subject to regulatory approvals. The acquisition will have a positive effect on earnings per share from the first full year after closing.
The financing is guaranteed by a bridging loan.
Sika boss Paul Schuler announced at the beginning of 2021 that he would increase the pace of acquisitions.
dab / dpa / Reuters