Holcim Plans Market Separation of US Business


Earlier this week, building materials and solutions provider Holcim revealed its intent to list its North America business in the United States with a full capital market separation. The transaction is reportedly intended to be executed as a spin-off to benefit shareholders.

The U.S. listing is expected to be completed in the first half of 2025. It will be subject to shareholder approval at an Extraordinary General Meeting expected in the first quarter of 2025, as well as other customary approvals. 

According to the company’s release, the process is anticipated to create a leading pure-play building solutions company in the region, with an estimated EBITDA margin of more than 27% for 2023. The newly listed business will reportedly be committed to driving long-term growth in an expanding North American market.

The Holcim post-U.S. listing of North America is expected to remain included in the Swiss Market Index and the leader in innovative and sustainable building solutions, the company notes.

“Holcim has reached a new level of financial performance and a superior earnings profile with industry-leading margins and a strong balance sheet. The success of our North American business makes it the leading pure-play building solutions company in the region,” said Chairman and Chief Executive Officer Jan Jenisch in a statement.

“With a U.S. listing, we will unleash its full potential to be the partner of choice for our customers in one of the world’s most attractive construction markets. As we fully capitalize on the region’s infrastructure and construction boom, we will accelerate growth and unlock value for our stakeholders.

“Holcim post-U.S. listing of North America will further advance its leadership in innovative and sustainable building solutions. With decarbonization and M&A as drivers of profitable growth, the company will continue to deliver leading margins and attractive shareholder returns.” 

“This next step of growth and value creation is possible thanks to the outstanding leadership of our empowered teams around the world delivering record results year after year.” 

Holcim explains that the business has a proven track record of profitable growth, with an average annual growth rate of over 20% and an over-proportional growth in EBIT of more than 26%, on average, over the past four years.

It is anticipated to execute an accelerated growth strategy to achieve more than $20 billion in net sales and more than $5 billion in EBIT with industry-leading margins by 2030.

For the Holcim post U.S. listing of North America, the estimated EBITDA margin is predicted to be over 23% for 2023. The company will aim to grow net sales to around CHF 22 billion, EBIT to more than CHF 4 billion, and free cash flow to more than CHF 3 billion by 2030. 

New CEO Announcement

That same day, the company’s Board of Directors appointed Miljan Gutovic as the new CEO, effective May 1. He will succeed Jenisch, who plans to focus on his role as chairman and will stand for re-election at the AGM in May. The board has also tasked Jenisch to lead the planned U.S. listing of Holcim’s North America business. 

“I am very pleased that the Board has appointed Miljan as the new CEO of Holcim. He is a highly qualified successor who has played an instrumental role in Holcim’s successful transformation to become the leader in innovative and sustainable building solutions. Miljan has strengthened our business with record profitability in Europe, closing strategic transactions and building winning teams,” said Jenisch.

“I am honored to stand for re-election as the chairman of the Board and to lead the planned US listing of Holcim’s North America business. I will continue to dedicate all my efforts to the future of Holcim and all our stakeholders.” 

Gutovic, an Australian national, has reportedly been a member of the Group Executive Committee since 2018. He has served as Head of the Region Middle East and Africa, followed by the Region Europe and Operational Excellence.

Holcim explains that, under his leadership, it has strengthened its market positions while delivering industry-leading margins and making decarbonization a driver of profitable growth.

“I thank the Board of Directors for trusting me to lead Holcim into its next chapter of success. As a civil engineer who is passionate about the construction industry, Holcim is the best company to be part of,” said Gutovic.

“With decarbonization and advanced technologies transforming how we build, there has never been a more exciting time for our sector. I look forward to working with the Holcim teams around the world to advance our leadership.” 

Gutovic holds a bachelor's degree in Civil Engineering and a Ph.D. in Material Sciences and Engineering from the University of Technology in Sydney. 


Tagged categories: Asia Pacific; Building materials; Business conditions; Business management; Business matters; Business operations; Cement; EMEA (Europe, Middle East and Africa); Good Technical Practice; Holcim; Industry News; Latin America; Market; North America; Program/Project Management; Z-Continents

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