SIKA MADE BINDING OFFER TO ACQUIRE PAREX|
Sika AG /
SIKA MADE BINDING OFFER TO ACQUIRE PAREX
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* Sika made binding offer to acquire Parex from CVC Fund V
* Parex, a leading mortar manufacturer with sales of CHF 1.2 billion and an
impressive track record of profitable growth and attractive margins (EBITDA:
* Strong footprint with 74 plants in 23 countries
* Combining two "growth engines", highly complementary in product offering and
* Enterprise value of CHF 2.5 billion with expected annual synergies of CHF
80 - 100 million
* Completion of transaction subject to French works council consultation
process and regulatory approvals, expected in Q2/Q3 2019
Sika has made a binding offer to acquire Parex from its current owner CVC Fund
V. Parex is a leading manufacturer of mortar solutions including facade mortars,
tile adhesives, waterproofing, and technical mortars. In 2018 the company
generated sales of CHF 1.2 billion and an expects an EBITDA of around CHF 195
million. With its expertise in mortar solutions for renovation and new builds,
Parex participates in all phases of the construction life cycle. Parex has a
particularly strong presence in distribution channels, combining recognized
brands with R&D expertise and technical excellence. It is locally present in 23
countries with key positions in 8 core geographies and operates 74 plants around
Paul Schuler, CEO of Sika: "Parex is an excellent company with well recognized
brands and an impressive performance track record. The businesses of Parex and
Sika are highly complementary. Using Parex technologies as a growth platform in
all our 101 countries and cross-selling of our products to the well established
distribution channels of Parex will generate great profitable growth. Parex's
excellent facade business can be leveraged in the entire Sika world. We warmly
welcome all employees of Parex to the Sika Family. We look forward to working
with the Parex team and we are excited about expanding our joint business
Eric Bergé, CEO of Parex: "Under CVC Fund V's ownership, the Parex team has
delivered a very strong performance, growing sales from EUR 750 million in 2013
to over EUR 1 billion. Over this 5-year period, Parex entered 3 new countries
and opened 16 new plants, added 11 bolt-on acquisitions, and built a new
international R&D center. Sika represents a great platform to continue to
deliver on Parex's ambitious growth plan and the combination creates new
exciting opportunities in terms of offering new solutions to our customers and
continuing our geographic expansion. I would like to thank our sponsor, CVC
Capital Partners, our teams across the world, and our customers for their trust
and support in these past five years, and we look forward to working with Sika
in the future."
With this acquisition Sika will further strengthen its leading position in
construction chemicals and industrial adhesives and will reach sales in excess
of CHF 8 billion. It will deepen and widen Sika's growth platform. Its mortar
business, which is a key growth technology for the group and one of its
important earning contributors, will more than double in size to CHF 2.3
billion. Parex's strong position in distribution channels will open up new
business opportunities for Sika's product range. Parex will gain access to
Sika's well established direct sales channels and Parex's expertise in the
facade and tile setting business will allow Sika to participate in these growing
and attractive market fields.
Annual synergies are expected to be in the range of CHF 80 - 100 million.
Purchase price represents a 11.3x EV / pro forma EBITDA 19E multiple which will
come down to less than 8.5x EV/EBITDA, including full run-rate synergies. The
acquisition is value enhancing to Sika shareholders and is expected to be
accretive to Sika's earnings per share from the first full year post closing.
The financing of the transaction is secured by a bridge loan facility committed
by UBS and Citi. Sika remains committed to maintaining a strong investment grade
credit rating and intends to put in place a long-term funding structure
comprising a combination of cash-on-hand, bank loans, and capital market
The acquisition is implemented in various steps. The completion of the
transaction is subject to French works council consultation process and
regulatory approvals and is expected in Q2/Q3 2019.
Analysts' and media conference today, January 8, 2019 at 9:30 a.m. (CET)
Today at 9.30 a.m. an analysts' and media conference will take place.
The following persons will present:
Paul Schuler, Chief Executive Officer
Adrian Widmer, Chief Financial Officer
Location: Sika premises, Tüffenwies 16, 8048 Zurich (Altstetten)
The conference will be transmitted live on the Sika website.
Link to the live transmission of the conference: www.sika.com/pressconference
Corporate Communications &
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SIKA CORPORATE PROFILE
Sika is a specialty chemicals company with a leading position in the development
and production of systems and products for bonding, sealing, damping,
reinforcing and protecting in the building sector and motor vehicle industry.
Sika has subsidiaries in 101 countries around the world and manufactures in over
200 factories. Its more than 19,500 employees generated annual sales of CHF
7.09 billion in 2018.
ABOUT CVC CAPITAL PARTNERS
CVC is a leading private equity and investment advisory firm. Founded in 1981,
CVC has a
network of 24 offices and approximately 450 employees throughout Europe, Asia
and the US. In total, CVC currently manages approximately US$69 billion of
assets. Today, CVC Funds are invested in 72 companies worldwide, employing
c.200,000 people in numerous countries. Together, these companies have combined
annual sales of over US$150 billion. For further information about CVC please
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Source: Sika AG via GlobeNewswire
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