Swiss cement giant Holcim is expanding in Europe. For a transaction value of €1.85 billion (CHF1.7 billion), Holcim is acquiring Xella, a provider of wall systems. Xella includes the Ytong, Silka, Hebel and Multipor brands.
Xella employs over 4,000 people and is expected to generate sales of around €1 billion in 2025, Holcim announced on Monday. The company, headquartered in Duisburg, Germany, offers its wall systems in 21 European markets.
Holcim sees the takeover as a “milestone in the implementation of the ‘NextGen Growth 2030’ strategy”, which is intended to shape the future of sustainable construction. This will strengthen the range of sustainable building products and open up additional cross and system sales opportunities, it said.
The acquisition is expected to have a positive effect on earnings per share and free cash flow from the first year onwards. From the third year onwards, recurring synergies at EBITDA level are expected to total €60 million annually.
