The construction chemicals manufacturer Sika released in the area of the French major shareholder of Saint-Gobain. For 2.5 billion Swiss francs, the Swiss grab the mortar producer Parex. Thus, the very profitable mortar business grows at Sika, more than Double. This is the largest Deal in the more than 100-year history of the company.
Until a few months ago, Sika was stuck in a defensive battle against the sale of Saint-Gobain. In may, the parties involved ended their long-standing dispute over the control of the company. Since then, the French competitor, which is also in the mortar business is involved, with 10 percent of Sika.
And this, Saint-Gobain, the world market leader for mortar products. In 2017, the French continued with the finished mortar products for the installation of tiles and floor coverings, around 2.3 billion euros. With the purchase of Parex Sika is catching up now in force: Sika grows in this area, to around 2.3 billion Swiss francs. Overall, the Sika group achieved with this acquisition, a turnover of about 8.3 billion Swiss francs.
Sika self-promoted the development of the business unit mortar only been around for eight years now. This claims to be one of the five core technologies of the group. After the completion of the Parex transaction, Sika will generate with mortar already 27 percent of group sales.
appetite for the time being
satisfied, The shareholder and competitor Saint Gobain to have informed only on the eve, said CEO Paul Schuler on Tuesday in front of the media. In Paris they had taken the news of the "left" - probably in the Knowledge that you would yourself come from antitrust Considerations hardly. "You know now that your competition is stronger," said Schuler.
Yet Parex is owned by the Private Equity company CVC Capital Partners. The Takeover took place in a staggered manner. The French works Council and the Supervisory authorities give the green light, is expected to be completed in the transaction in the second or third quarter of 2019.
Sika financed the Acquisition with a bridge loan from UBS and Citibank. For the shareholders the transaction is expected to be from the first year of adding value. Usually, Sika buys throughout the year, and several smaller competitors. 2018 approximately, there were four. Therefore, it is important to digest the Bite of Parex for now. "Now, there is probably a break in the case of large Deals," said group chief Schuler. He also gave the speculation, Sika could incorporate soon, the construction chemicals business of the Competitor, BASF, a rejection. This is since last October, for sale.
sales for the first time about 7 billion
at the same time, Sika has made a first indication of the 2018 fiscal year. Sales in local currencies rose by 13.7 percent to 7.09 billion francs, analysts ' expectations have been met. The targeted cities for the use of the urbanization has made according to Sika paid.
For the full year of 2018, the group makes an operating profit Ebit of 940 to 960 million francs in the offing. For the just begun year 2019, Sika is anticipating sales growth of 6 to 8 percent, and an above-average earnings growth.
Although the acquisition of the majority of experts surveyed was praised, sent to the stock exchange, the Sika-papers up to 13 at around 3 percent down. The main reason is the latest statements on the profitability in the last year, which were significantly lower than the expectations were. Especially attractive raw material to the strong Swiss franc, as well as various one-off costs, such as for the settlement of the takeover quarrel had debited the account of more costs. (Dec/sda)
Created: 08.01.2019, 08:21 PM