8 January 2019
DOWNLOAD ACQUISITION PRESENTATION
DETAILS
Sika has made a binding offer to acquire
Parex
from its current owner CVC Fund V.
Parex is a leading manufacturer of mortar solutions
including facade mortars, tile adhesives, waterproofing,
and technical mortars.
In 2018 the company generated sales of CHF 1.2 billion
and an expects an EBITDA of around CHF 195 million.
With its expertise in mortar solutions
for renovation and new builds, Parex participates
in all phases of the construction life cycle.
Parex has a particularly strong presence
in distribution channels, combining recognized brands
with R&D expertise and technical excellence.
It is locally present in 23 countries
with key positions in 8 core geographies
and operates 74 plants around the world.
With this acquisition Sika will further strengthen
its leading position
in construction chemicals and industrial adhesives
and will reach sales in excess of CHF 8 billion.
It will deepen and widen Sika’s growth platform.
Its mortar business, which is a key growth technology
for the group and one of its important earning contributors,
will more than double in size to CHF 2.3 billion.
Parex’s strong position in distribution channels
will open up new business opportunities
for Sika’s product range.
Parex will gain access to
Sika’s well established direct sales channels and
Parex’s expertise in the facade and tile setting business
will allow Sika to participate
in these growing and attractive market fields.
FINANCIAL PARAMETERS
Annual synergies are expected to be
in the range of CHF 80 – 100 million.
Purchase price represents
a 11.3x EV / pro forma EBITDA 19E multiple
which will come down
to less than 8.5x EV/EBITDA,
including full run-rate synergies.
The acquisition is value enhancing to Sika shareholders
and is expected to be accretive to
Sika's earnings per share
from the first full year post closing.
The financing of the transaction is secured by
a bridge loan facility committed by UBS and Citi.
Sika remains committed to maintaining
a strong investment grade credit rating and
intends to put in place a long-term funding structure
comprising a combination of
cash-on-hand, bank loans,
and capital market instruments.
The acquisition is implemented in various steps.
The completion of the transaction is subject to
French works council consultation process
and regulatory approvals
and is expected in Q2/Q3 2019.
Paul Schuler,
CEO of Sika
“Parex is an excellent company with well recognized brands
and an impressive performance track record.
The businesses of Parex and Sika are highly complementary.
Using Parex technologies as a growth platform
in all our 101 countries and cross-selling
of our products to the well established distribution channels
of Parex will generate great profitable growth.
Parex’s excellent facade business can be leveraged
in the entire Sika world. We warmly welcome
all employees of Parex to the Sika Family.
We look forward to working with the Parex team
and we are excited about
expanding our joint business operations.”
Eric Bergé,
CEO of Parex
“Under CVC Fund V’s ownership, the Parex team
has delivered a very strong performance,
growing sales
from EUR 750 million in 2013 to over EUR 1 billion.
Over this 5-year period, Parex entered 3 new countries
and opened 16 new plants, added 11 bolt-on acquisitions,
and built a new international R&D center.
Sika represents a great platform to continue to deliver
on Parex’s ambitious growth plan and the combination
creates new exciting opportunities in terms of
offering new solutions to our customers and
continuing our geographic expansion.
I would like to thank our sponsor,
CVC Capital Partners, our teams across the world,
and our customers for their trust and support
in these past five years, and we look forward
to working with Sika in the future.”
CONTACT
Dominik Slappnig
Corporate Communications & Investor Relations
+41 58 436 68 21
slappnig.dominik@ch.sika.com
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