SIKA AG

Sika to acquire MBCC Group

Sika has signed a definitive agreement to acquire MBCC Group, the former BASF Construction Chemicals, from an affiliate of Lone Star Funds, a global private equity firm, for a consideration of CHF 5.5 billion (€ 5.2 billion). MBCC Group is a leading supplier in construction chemicals worldwide. The acquisition will complement and broaden Sika’s product and solution offerings in four of five core technologies and seven of eight Sika Target Markets and will further strengthen its geographic footprint. The combined business will be a key accelerator in enabling both Sika’s and MBCC Group’s customers and the construction industry to drive the sustainable transformation further and faster.

MBCC Group, headquartered in Mannheim/ Germany, is active in the field of construction systems and admixture systems. With approximately 7500 employees MBCC Group has operations in over 60 countries and more than 130 production facilities. In 2021, the company is expected to generate net sales of CHF 2.9 billion (€ 2.7 billion). MBCC Group has a world-renowned product portfolio of global and local brands which enjoy a strong reputation for quality and reliability. With its broad and balanced product offering, MBCC Group participates in all phases of the construction life cycle and is a key contributor to the decarbonization of the construction industry.

The transaction will accelerate Sika’s resilient Growth Strategy 2023 and beyond. Sika will expand its product and service offering in construction chemicals and industrial adhesives by adding the highly complementary portfolio of MBCC Group and is set to reach sales in excess of CHF 13 billion in 2023. The combination will lead to a very balanced product portfolio with all of Sika’s Target Markets achieving between CHF 1 and 2 billion in sales. Customers will benefit from an enhanced and more efficient distribution network across all construction markets. Sustainability stands at the core of both companies. As such, the acquisition combines two highly motivated and extremely capable global teams that will support a strong sustainability footprint for the future.

Today, 70% of Sika’s sales is 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.

www.sika.com

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