Sika Seals MBCC Acquisition After Deal to Divest Some Assets

By Joshua Kirby

Sika said Tuesday that it has finalized its acquisition of German construction-chemicals firm MBCC Group, after securing regulatory approvals through divestment of part of the business.

The Swiss chemicals group in March reached a deal to sell MBCC's chemical-admixtures assets in various countries to private-equity firm Cinven with approval from the U.K. Competition and Markets Authority, after it had to pull out of a previous deal with Ineos Enterprises because of concerns raised by the antitrust regulator.

The acquired business generated around 2.1 billion Swiss francs ($2.35 billion) last year, Sika said, and will help the combined group top CHF12 billion in sales this year, compared with the CHF10.49 billion Sika made last year.

Annual synergies should be in the range of CHF160 million to CHF180 million by 2026, Sika said.

"Sika's sustainable product portfolio will be further enhanced with MBCC's innovative technologies," the company said.

Sika said in 2021 that it would acquire MBCC from an affiliate of Lone Star Funds, in a transaction with an enterprise value of CHF5.5 billion.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

May 02, 2023 12:39 ET (16:39 GMT)

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