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Sika Moves to Acquire Parex in $2.5B Deal

Wednesday, January 16, 2019

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Swiss chemicals company Sika has announced a binding offer to buy French coatings company Parex for a reported 2.5 billion Swiss franc ($2.53 billion).

According to Reuters, the deal, which consists of Sika buying the company from private equity firm CVC Capital Partners, would be the biggest seen in Europe’s construction materials sector for nearly the past four years.

About the Deal

Parex is a leading manufacturer in materials such as mortar, adhesives and waterproofing products, among others in the industry, and has reported annual sales of 1.2 billion Swiss franc.

Sika

Swiss chemicals company Sika has announced a binding offer to buy French coatings company Parex for a reported 2.5 billion Swiss franc ($2.53 billion).

The company is present in 23 countries and operates 74 plants around the world.

"Parex is an excellent company with well-recognized brands and an impressive performance track record,” said Sika CEO Paul Schuler.

“The businesses of Parex and Sika are highly complementary. Using Parex technologies as a growth platform in all our 101 countries and cross-selling of our products to the well established distribution channels of Parex will generate great profitable growth. Parex's excellent facade business can be leveraged in the entire Sika world. We warmly welcome all employees of Parex to the Sika family. We look forward to working with the Parex team, and we are excited about expanding our joint business operations."

Sika says that the buy will grow the business because there’s very few overlaps in specific products from the two companies. Sika referred to the deal as “combining two growth engines.”

"Under CVC Fund V's ownership, the Parex team has delivered a very strong performance, growing sales from EUR 750 million in 2013 to over EUR 1 billion,” said Parex CEO Eric Berge.

“Over this five-year period, Parex entered three new countries and opened 16 new plants, added 11 bolt-on acquisitions, and built a new international R&D center. Sika represents a great platform to continue to deliver on Parex's ambitious growth plan and the combination creates new exciting opportunities in terms of offering new solutions to our customers and continuing our geographic expansion. I would like to thank our sponsor, CVC Capital Partners, our teams across the world and our customers for their trust and support in these past five years, and we look forward to working with Sika in the future."

The deal is still pending regulatory approval and is expected to wrap up in the third quarter of 2019.

   

Tagged categories: Acquisitions; Business matters; Business operations; EMEA (Europe, Middle East and Africa); Good Technical Practice; Mergers; Parex USA; Sika

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