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EU: Sika to buy Parex in US$2.6B building materials deal

By  |  January 8, 2019

Swiss chemicals company Sika has agreed to buy French rival Parex in a 2.5 billion Swiss franc (US$2.6 billion) deal, the latest in a wave of consolidation in the construction materials sector.

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    Sika’s planned purchase of Parex from private equity firm CVC Capital Partners will double the size of its mortars business and generate as much as 100 million francs (US$101.9 million) in savings, as well as boosting earnings in the first full year of ownership, the company stated on Tuesday, January 8.

    The deal sent Sika shares tumbling as much as 4.2% in Zurich. Although the deal looks expensive at first glance, expected synergies appear reasonable and will bring down the valuation, Baader Bank analyst Markus Mayer wrote in a note.

    Full Content: Bloomberg

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