Sika looks to taking over French mortar-manufacturer Parex

The Sika speciality chemicals company, which is headquartered in Baar, has announced that it looking to take over the French mortar-manufacturing company Parex for CHF 2.5 billion.

It is only months ago that Sika managed to see off a hostile takeover attempt by a French competitor, the Saint-Gobain company. After a legal conflict lasting many years, agreement was able to be reached between the heirs of the founder of the company, represented through the Schenker-Winkler Holding, which originally wanted to sell out to Saint Gobain, and Sika, which ended up remaining an independent Swiss-based company, just as so many representatives of its senior management wanted.

At present, the Parex company, which operates 74 factories in 23 countries and achieved a turnover of some CHF 1.2 billion in 2018, not to mention pre-tax profits of CHF 195 million, is owned by the private equity company CVC Capital Partners.

As mortar manufacturing is among the core activities of Sika, with this takeover, which is to take place in stages, the company expects to double its sales in this area to CHF2.3 billion.

At the same time this announcement was made, Sika also released some information about its figures for 2018, when its turnover increased by 13.7 per cent to (the equivalent of) CHF 7.09 billion, exceeding the figure analysts had forecast.

The company further confirmed it had grown in all the areas in which it operated and had extended its market share. Furthermore, four other companies had been taken over and eleven new factories built.

As for 2019, the company is looking to increasing its turnover between six to eight per cent coupled with an above-average increase in profits.

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