SIKA to take over MBCC

Within two years of acquiring MBCC Master Builders Solutions from BASF, private equity firm Lone Star of Texas, USA, has signed a €5.2 billion deal for SIKA to acquire what it sees as highly complementary to its core technologies and to drive sustainability in the construction industry. The acquisition will broaden Sika product and solution offerings and benefit customers from a strengthened geographic footprint and more efficient distribution network across all construction markets.

The agreed deal, for a consideration of €5.2 billion, values MBCC at about €2 billion more than the €3.2 billion paid by Lone Star two years ago to acquire MBCC from BASF. In responding to the point, Sika CEO Thomas Hasler said that Sika had considered acquiring MBCC two years ago but that it was in the process of acquiring the mortar manufacturing company Parex at the same time and decided to concentrate on that acquisition first. “The profitability of MBCC has also improved in the two years of ownership by Lone Star,” said Hasler. “It is a much better purchase now than is was then and the MBCC carve-out from BASF is now totally complete.” The acquisition he said provides improved combines sales of the two companies from a current €9 billion (€2.7 billion by MBCC) to €11.8 billion and with a projection of combined group sales in excess of €13 billion by 2023. Combining the operational and manufacturing footprint of Sika and MBCC is expected to accrue annual cost synergies in the range of CHF160-180million by 2025.

Reducing the carbon footprint of the construction industry is a key of the acquisition. “Two sustainability champions across the entire construction life cycle are to join forces,” said Hasler. “Together, we will enable and accelerate the future of sustainable construction. Efforts to reduce the carbon footprint in the construction industry is picking up, but the speed is by far not in line with what was being discussed at COP26 in Glasgow. We need more firm directions to help make this transformation faster. Today, 70% of Sika sales are generated by products that have a positive effect on sustainability and 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.”

With about 7,500 employees and operations in more than 60 countries and more than 130 production facilities, Jochen Fabritius, CEO of MBCC Group, said: “We have found a perfect partner who shares our core beliefs. Together with Sika, we are looking forward to exploring new and exciting business opportunities.” He thanked Lone Star for the “tremendous support during the past few years and for helping us to prepare for this next chapter.” •