Por John Revill
ZURICH, Nov 11 (Reuters) – Swiss chemical company Sika will buy construction chemicals maker MBCC from Lone Star in a 5.5 billion Swiss francs ($ 6.03 billion) deal, it announced at one point on Thursday. intensifying its acquisition strategy in a fragmented $ 70 billion industry.
Sika said it will buy MBCC Group, formerly known as BASF Construction Chemicals, from a subsidiary of private equity firm Lone Star Funds.
MBCC, based in the German city of Mannheim, expects sales for 2021 of 2.9 billion Swiss francs thanks to the sale of building systems and chemical additives.
The MBCC acquisition represents a turnaround for Sika, which this year has bought seven small companies in China, Mexico, the United States, Japan, Brazil and Russia.
Markus Mayer, an analyst at Baader Helvea, said it was surprising that Sika bought the old BASF business at a 64% premium over the price that Lone Star paid in 2019, after Sika pointed out several weaknesses in the business at the time.
“Overcoming the weaknesses of MPCC will be one of the most challenging tasks for Sika,” Mayer said. “By contrast, Sika’s track record of integration is very strong, and so if anyone can turn the business around, it could be Sika.”
(Information from John Revill; additional information from Brenna Hughes Neghaiwi; edited by Michael Shields and Susan Fenton; translated by Flora Gómez)