Holcim Announces Spinoff Of North American Business
Holcim, the Swiss-based global cement and aggregates company, announced its intent to spin off its North American business in the U.S. with a “full capital market separation.” In a press release, the company said, “This process will 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.”
Holcim’s assets include river terminals in several locations. Its cement plant in Ste. Genevieve, Mo., is the largest in the United States. The plant’s website notes, “One in five building projects in the U.S. contains Ste. Genevieve-produced cement because of the access our plant has to America’s river system, including the Mississippi River on its eastern border.” Besides cement, the company’s products include clinker, concrete, lime, aggregates and roofing materials.
After the U.S. listing of North America, Holcim is expected to remain included in the Swiss Market Index and a leader in innovative and sustainable building solutions. The board has tasked current CEO Jan Jenisch to lead the planned U.S. listing of Holcim’s North America business as chairman and CEO. Miljan Gutovic, current region head-Europe, has been named CEO, replacing Jenisch in the international company.“Holcim has reached a new level of financial performance and a superior earnings profile with industry-leading margins and a strong balance sheet,” Jenisch said. “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.”
The North American business will execute an accelerated growth strategy to achieve more than $20 billion in net sales by 2030, the company said.
“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,” Holcim said in the announcement.
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. 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.
Goldman Sachs International and Perella Weinberg Partners are acting as financial advisers, and Skadden, Arps, Slate, Meagher & Flom LLP and Bär & Karrer AG are serving as legal advisers.
