Holcim said to plan separation of North American business

A Holcim cement works in Untervaz, canton Graubünden, in June 2021. © Keystone / Gaetan Bally

Holcim Ltd. is nearing a deal to separate its North American business, according to people with knowledge of the matter. 

The deal may be announced as soon as Monday, they said, asking not to be identified as details haven’t been made public. The Wall Street Journal first reported on the deal, saying it may value the business at $30 billion, though there’s no guarantee the company can achieve the targeted valuation.

Holcim didn’t immediately respond to a request for comment on the proposed separation.

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Holcim, based in Zug, Switzerland, is one of the largest suppliers of building materials such as cement in North America. The region accounted for more than a third of the company’s 2022 revenue and it’s been rapidly expanding through an acquisition spree.

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Under Chief Executive Officer Jan Jenisch, Holcim agreed to buy Duro-Last Inc., a US maker of commercial roofing systems, in a deal last year valued at $1.3 billion, and acquired Bridgestone Corp.’s Firestone Building Products unit in 2021 for $3.4 billion. 

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Holcim’s shares are little changed over the past 10 years and currently trade at CHF64.2 each, valuing the overall business at CHF37 billion ($43 billion).  

A separation would allow Holcim to eventually take its North American business public in the US, the WSJ reported. That would potentially offer a more attractive valuation, allowing the company to fund future acquisitions using its own stock. 

CRH Plc, a Dublin-based rival maker of building materials, shifted its listing to New York last September and its shares have climbed roughly 24% since. 

©2024 Bloomberg L.P.

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