Sika Acquires Construction Chemicals Company

Specialty chemicals company Sika (Baar, Switzerland) signed a definitive agreement to acquire MBCC Group (Mannheim, Germany), formerly known as BASF Construction Chemicals, from an affiliate of Lone Star Funds for a consideration of CHF 5.5 billion (~$5.4 billion USD). The acquisition will complement and broaden Sika’s product and solution offerings in four of five core technologies and seven of eight of Sika’s target market markets, as well as further strengthen its geographic footprint.

A leading supplier in construction chemicals worldwide, MBCC Group is active in the field of construction systems and admixture systems. MBCC Group has a world-renowned product portfolio of global and local brands with a broad and balanced product offering, The company participates in all phases of the construction life cycle and is a key contributor to the decarbonization of the construction industry.

“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,” says Sika CEO Thomas Hasler. “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.”

“We have found a perfect partner who shares our core beliefs,” says MBCC Group CEO Jochen Fabritius. “Sika is well-known for its entrepreneurial spirit and its profitable growth strategy, including a strong acquisition track record. Our products and competencies will again be at the core of the business. Together with Sika, we are looking forward to exploring new and exciting business opportunities. I would like to thank Lone Star for the tremendous support during the past few years and for helping us to prepare for this next chapter.”

The transaction will accelerate Sika’s 2023 growth strategy 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. As Sika notes in their press release announcing the transaction, “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.”

The acquisition is subject to regulatory approval. Once all clearances have been obtained, the acquisition is scheduled to be closed during the second half of 2022.

Source: Sika, www.sika.com.