Holcim ‘Splits Off’ Successful U.S. Business

ZURICH – Holcim, a building and roofing materials producer, is ‘splitting off’ its North American business with a full capital market separation, to  create the “leading pure-play building solutions company in the region.”

The newly-listed business will be committed to driving long-term growth in the rapidly expanding North American market and unlocking value for all its stakeholders.

After the split, Holcim is expected to remain included in the Swiss Market Index. The Board of Directors has tasked Jan Jenisch to lead the planned U.S. listing of Holcim’s North America business.

“Holcim has reached a new level of financial performance and a superior earnings profile with industry-leading margins and a strong balance sheet,” said Jenish. “The success of our North American business makes it the leading pure-play building solutions company in the region. With a U.S. listing, we will unleash its full potential to be the partner of choice for our customers in one of the world’s most attractive construction markets. As we fully capitalize on the region’s infrastructure and construction boom, we will accelerate growth and unlock value for our stakeholders.”

Jenish said with decarbonization and M&A as drivers of profitable growth, the company will continue to deliver leading margins and attractive shareholder returns.

“This next step of growth and value creation is possible thanks to the outstanding leadership of our empowered teams around the world delivering record results year after year.”

It will execute an accelerated growth strategy to achieve more than USD 20 billion in net sales and more than USD 5 billion in EBIT with industry-leading margins by 2030. With over 850 state-of-the-art operations, this business is a leader in advanced roofing systems, the no. 1 player in cement, and strongly positioned in aggregates and ready-mix. Building on its leading footprint, the North American business is ideally positioned to capitalize on the strong construction spend and once-in-a-generation infrastructure investments across the region.

The listed North American business will be the leading pure-play building solutions company in the region, with an estimated EBITDA margin of more than 27% for 2023. This business has a proven track record of outstanding profitable growth with an average annual growth rate of over 20% and an over-proportional growth in EBIT of more than 26%, on average, over the past four years.

The listed company will pursue a dollar-based tailored capital structure and capital allocation priorities, creating a distinct and compelling investment profile. With its pure-play focus on North American customers and market opportunities, it will drive deeper strategic and operational priorities.

After the U.S. listing, Holcim will advance its leadership position in innovative and sustainable building solutions, with an estimated EBITDA margin of over 23% for 2023. The company will aim to grow net sales to around CHF 22 billion, EBIT to more than $4.63 billion, and free cash flow to more than $3.47 billion by 2030.

Building on its superior financial performance, the company will accelerate its leadership in decarbonization and circularity as drivers of profitable growth, advancing sustainable building solutions for its customers. It will continue its portfolio transformation with disciplined value-accretive transactions, including expanding into the attractive Solutions & Products segment, focusing on advanced mortars and insulation for repair and refurbishment.

The transaction is intended to be executed as a spin-off, with the final structure to be communicated in the second half of this year. Holcim plans to hold Capital Markets Days for both entities in the same timeframe.

The U.S. listing is expected to be completed in the first half of 2025. It will be subject to shareholder approval at an Extraordinary General Meeting expected in the first quarter of 2025, as well as other customary approvals.

Holcim post U.S. listing of North America is expected to remain included in the Swiss Market Index. Both companies will pursue tailored strategies and capital structures to support growth and value creation. The transaction is intended to unlock value by creating two distinct and compelling investment profiles with attractive shareholder returns.

Goldman Sachs International and Perella Weinberg Partners are acting as financial advisors and Skadden, Arps, Slate, Meagher & Flom LLP and Bär & Karrer AG are serving as legal advisors.
Holcim is a global leader in innovative and sustainable building solutions with net sales of $33.8 billion in 2022. Driven by its purpose to build progress for people and the planet, its 60,000 employees are on a mission to decarbonize building, while improving living standards for all.

The company empowers its customers across all regions to build better with less, with its broad range of low-carbon and circular solutions, from ECOPact to ECOPlanet. With its innovative systems, from Elevate roofing to PRB’s insulation, Holcim makes buildings more sustainable in use, driving energy efficiency and green retrofitting. With sustainability at the core of its strategy, Holcim is becoming a net-zero company with 1.5°C targets validated by the Science Based Targets initiative (SBTi).

Learn more about Holcim at www.holcim.com.