(Amends EBITDA definition in paragraph 7, no other changes)
By John Revill
ZURICH (Reuters) -Holcim announced on Monday a 1.85 billion euro ($2.16 billion) agreement to acquire German walling systems maker Xella, marking the Swiss building materials company’s largest acquisition under CEO Miljan Gutovic since he took over in May 2024.
The transaction reflects Holcim’s strategic shift away from its core cement business towards expanding its building product segment, which includes roofing and insulation systems.
Gutovic said the deal was part of Holcim’s strategy to focus on sustainable construction.
“Xella will add to our customer offering in the highly attractive EUR 12 billion+ walling market, with cross-selling and systems-selling opportunities,” the Chief Executive said in a statement.
Based in Duisburg, Germany, Xella has more than 4,000 employees, and is present in 21 of Europe’s most attractive markets, Holcim said.
Xella, which uses brands like Ytong, Silka, Hebel and Multipor for its products, has projected sales of around 1 billion euros in 2025.
Holcim said it was paying a multiple of 8.9 times Xella’s projected 2026 earnings before interest, tax, depreciation and ammortisation (EBITDA), and said it expected the acquisition to be earnings accretive in year one.
The Swiss company said it expected the deal to be completed in the second half of 2026.
($1 = 0.8570 euros)
(Reporting by John Revill, editing by Kirsti Knolle)
