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Sika to Acquire MBCC Group

Monday, November 22, 2021

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Swiss specialty chemicals company Sika recently reported that it had signed a definitive agreement to acquire MBCC Group, the former BASF Construction Chemicals, from global private equity firm affiliate of Lone Star Funds, for a consideration of CHF 5.5 billion ($5.9 billion).

“Two sustainability champions will join forces. Sika is first in class for sustainable solutions across the entire construction industry, and similarly, sustainability stands at the core of MBCC Group’s business,” said Thomas Hasler, Sika CEO.

“Together we will reinforce our complementary range of products and services across the entire construction life cycle. With our combined portfolio, we will enable and accelerate the future of sustainable construction for the benefit of customers, employees, shareholders and coming generations.”

kazuma seki / Getty Images

Swiss specialty chemicals company Sika recently reported that it had signed a definitive agreement to acquire MBCC Group, the former BASF Construction Chemicals, from global private equity firm affiliate of Lone Star Funds, for a consideration of CHF 5.5 billion ($5.9 billion).

A leading supplier in construction chemicals worldwide, MBCC Group has an enterprise value of CHF 5.5 billion, which represents a 11.5-times EV/pro forma 2022E EBITDA. The company is headquartered in Mannheim, Germany, and is active in the field of construction systems and admixture systems.

MBCC Group employs approximately 7,500 employees over 60 countries and has more than 130 production facilities. In this year alone, the company is expected to generate net sales of CHF 2.9 billion.

According to Sika, the acquisition will complement and broaden its product and solution offerings in four of five core technologies and seven of eight Sika Target Markets. In addition, the acquisition will also further strengthen Sika’s geographic footprint.

“We have found a perfect partner who shares our core beliefs. Sika is well-known for its entrepreneurial spirit and its profitable growth strategy, including a strong acquisition track record,” said Jochen Fabritius, CEO of MBCC Group. “Our products and competencies will again be at the core of the business. Together with Sika, we are looking forward to exploring new and exciting business opportunities. I would like to thank Lone Star for the tremendous support during the past few years and for helping us to prepare for this next chapter.”

Sika reports that the transaction of MBCC Group will accelerate its Growth Strategy 2023 and beyond. Customers are also slated to benefit from an enhanced and more efficient distribution network across all construction markets as a result of the acquisition.

Currently, 70% of Sika’s sales are generated by products that have a positive effect on sustainability, whereas more than 35% of MBCC Group products are sustainably advanced. Through the combination, Sika is committed to generating 80% of its sales from products that positively impact sustainability

The acquisition is subject to regulatory approval. Sika is confident it will obtain all clearances and will actively engage with the authorities. The closing of the acquisition is targeted for the second half of 2022.

   

Tagged categories: Acquisitions; Asia Pacific; Business management; Business matters; Business operations; Construction chemicals; EMEA (Europe, Middle East and Africa); Latin America; North America; Program/Project Management; Sika; Z-Continents

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