Sika to buy materials maker Parex for $2.6bn

Bloomberg

Sika AG offered to acquire Parex Ltd at an enterprise value of 2.5 billion Swiss francs ($2.6 billion), adding a maker of mortar and other construction materials to expand a key business for the Swiss chemicals group.
The purchase will add to earnings per share from the first full year after the deal is completed, expected in the second or third quarter following regulatory and other approvals, Sika said.
Baar, Switzerland-based Sika estimates that the transaction will generate “annual synergies” of as much as 80 million to 100 million Swiss francs.
Sika said the acquisition of closely held Parex from CVC Capital Partners will help the Swiss group further strengthen its lead in construction chemicals and industrial adhesives and boost sales to exceed 8 billion Swiss francs. The mortar business — a key growth technology for the group and one of its important contributors to earnings — will more than double in size to 2.3 billion Swiss francs.
The purchase of Parex is at least the third acquisition announced by Sika in less than three months.
Sika said in November that it bought the concrete-fibers business of Propex Holding LLC, and in December said it agreed to buy Arcon Membrane Srl, a manufacturer of roofing and waterproofing systems in Romania.
“The businesses of Parex and Sika are highly complementary,” Sika Chief Executive Officer Paul Schuler said in a statement on Tuesday.
“Using Parex technologies as a growth platform” will help to generate “great profitable growth,” he said.
Sika has secured commitment for a bridge loan from UBS and Citi to fund the transaction.