INEOS Enterprises expands its presence in the construction chemicals market with the acquisition of MBCC Group’s assets from Sika AG

INEOS Enterprises expands its presence in the construction chemicals market with the acquisition of MBCC Group’s assets from Sika AG

(PRESS RELEASE) BAAR, 16-Jan-2023 — /EuropaWire/ — Sika (SWX: SIKA), a Swiss multinational manufacturer of construction chemicals and adhesives, has announced that it has signed an agreement with INEOS Enterprises, a subsidiary of INEOS, to sell select assets from its recent acquisition of MBCC Group. The assets being sold include the admixtures business in the US, Canada, Europe, and the UK, as well as the entire operations in Australia and New Zealand.

This divestment is a key milestone in Sika’s acquisition of MBCC Group, as it is part of the required remedy process. The assets being sold, known as the “Disposal Perimeter”, generated net sales of around CHF 920 million by the end of 2022 and include production sites and sales offices in 36 countries, employing more than 1,600 people.

Sika has confirmed that the divestment of these assets will result in synergy potential of CHF 160-180 million following the expected closing in the first half of 2023. This acquisition is a strategic move for INEOS Enterprises as it expands its presence in the construction chemicals market.

The disposal of these assets will allow Sika to focus on its core business and continue to provide its customers with the highest quality products and services. This move is expected to benefit both Sika and INEOS Enterprises, as it allows each company to capitalize on their respective strengths in the industry.

Thomas Hasler, CEO Sika AG: “The agreement with INEOS Enterprises marks a key milestone in Sika’s acquisition of MBCC Group. I am convinced that we have found a long-term home for the MBCC Group’s admixture business. The perfect new owner who will further develop the business together with a talented and driven MBCC Group team. At the same time, Sika has taken a tremendous leap forward on its path to joining forces with MBCC Group. Together we will strengthen our growth platform further.”

Ashley Reed, CEO INEOS Enterprises: “I am very pleased to have agreed the acquisition of MBCC Group’s Admixture business, these well invested and well positioned sites, present new opportunities for INEOS to grow in the construction market. We have a strong track record of manufacturing excellence, running businesses safely and reliably and working closely with customers to meet their growth aspirations. I very much look forward to welcoming the business into INEOS.”

The completion of the transaction as well as Sika’s acquisition of MBCC Group are subject to regulatory approvals and expected in first half of 2023. Sika expects annual synergies of CHF 160-180 million following closing. The company has already received unconditional regulatory approval for the acquisition of MBCC Group in countries such as Japan, China, Brazil, South Africa, Saudi Arabia, Turkey, Thailand, and Mexico.

SIKA AG CORPORATE PROFILE
Sika is a specialty chemicals company with a leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and motor vehicle industry. Sika has subsidiaries in 101 countries around the world and manufactures in over 300 factories. Its more than 27,500 employees generated annual sales of CHF 10.49 billion in 2022.

Media contact:

Dominik Slappnig
Corporate Communications &
Investor Relations
+41 58 436 68 21
slappnig.dominik@ch.sika.com

SOURCE: SIKA AG