Zurich The Swiss specialty chemicals group Sika is buying in Germany: Sika is acquiring the Mannheim-based construction chemicals group MBCC for 5.2 billion euros, as the company announced on Thursday. MBCC continues the former construction chemicals business of BASF. It was last owned by the private equity firm Lone Star Funds.
The company also announced that the acquisition complements Sika in important core technologies and sales markets. Sika announced that the deal would bring positive earnings per share after just one year.
The group, based in Baar, manufactures chemicals for concrete production, sealants as well as roof and facade systems. MBCC also produces, among other things, concrete admixtures as well as mortar and floor coverings. Sika boss Thomas Hasler wants to grow in the field of sustainable building through the acquisition: “With our combined portfolio we want to enable and accelerate sustainable building for the benefit of our customers, employees, shareholders and future generations.”
Sika recently benefited from the global construction boom: the share has risen by almost 30 percent since the beginning of the year. In the first half of 2021, the company had sales of 4.4 billion francs, 23 percent more than in the same period of the previous year. MBCC is aiming for net sales of 2.7 billion euros in 2021. The Mannheim-based company is valued at 11.5 times the expected pre-tax income (Ebitda).
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With the takeover, Sika aims to achieve sales of over 13 billion Swiss francs by 2023. The group expects annual synergies of 160 to 180 million francs. For CEO Hasler it is the first major acquisition since his appointment as CEO in February 2021. This year alone, the group has made acquisitions in the USA, Mexico, Japan and China – albeit with significantly smaller deals.
The deal is also a success for the private equity fund Lone Star. This had only taken over the construction chemicals business of BASF for just under 3.2 billion euros last September. That corresponds to a return of 62 percent within just 14 months.
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