Swiss chemicals group Sika has agreed to buy German rival MBCC Group – the former BASF construction chemicals business – for CHF5.5bn.
Sika said the deal is highly complementary across almost all of its core technologies, applications, and solutions, and will be accretive to its earnings per share from the first full year after closing. Annual synergies are expected to be between CHF160m and CHF180m by 2025.
Sika said MBCC is one of the most recognised companies in construction chemicals worldwide, with sales of around CHF 2.9bn.
Thomas Hasler, chief executive officer of Sika, said: “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.
“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.”
The deal is expected to close in the second half of next year.
Sika shares surged on the news and by 1320 GMT were trading up 10.3% at CHF355.50.
