Sika has signed a definitive agreement to acquire MBCC Group, the former BASF Construction Chemicals, from an affiliate of Lone Star Funds, a global private equity firm, for a consideration of CHF5.5 billion ($6 billion).

MBCC Group is a leading supplier in construction chemicals worldwide. The acquisition will, Sika says, complement and broaden its product and solution offerings in four of five core technologies and seven of eight Sika Target Markets, in addition to further strengthening its geographic footprint.

Both MBCC Group and Sika have large shotcrete offerings for the mining sector.

“The combined business will be a key accelerator in enabling both Sika’s and MBCC Group’s customers and the construction industry to drive the sustainable transformation further and faster,” it added.

MBCC Group, headquartered in Mannheim, Germany, is active in the field of construction systems and admixture systems. It has operations in over 60 countries and more than 130 production facilities.

“With its broad and balanced product offering, MBCC Group participates in all phases of the construction life cycle and is a key contributor to the decarbonisation of the construction industry,” Sika said.

Thomas Hasler, CEO of Sika, said: “Two sustainability champions will join forces. Sika is first in class for sustainable solutions across the entire construction industry, and similarly, sustainability stands at the core of MBCC Group’s business. Together we will reinforce our complementary range of products and services across the entire construction life cycle. With our combined portfolio, we will enable and accelerate the future of sustainable construction for the benefit of customers, employees, shareholders, and coming generations.”

Jochen Fabritius, CEO of MBCC Group, added: “We have found a perfect partner who shares our core beliefs. Sika is well known for its entrepreneurial spirit and its profitable growth strategy, including a strong acquisition track record. Our products and competencies will again be at the core of the business. Together with Sika, we are looking forward to exploring new and exciting business opportunities.”

The transaction will see Sika expand its product and service offering in construction chemicals and industrial adhesives by adding the highly complementary portfolio of MBCC Group, and is set to reach sales in excess of CHF13 billion in 2023.

Customers will benefit from an enhanced and more efficient distribution network across all construction markets, it said, while sustainability stands at the core of both companies.

Today, 70% of Sika’s sales is generated by products that have a positive effect on sustainability, whereas more than 35% of MBCC Group products are sustainably advanced, according to the company.

“Through the combination, Sika is committed to generating 80% of its sales from products that positively impact sustainability.”

The acquisition is subject to regulatory approval. Sika is confident it will obtain all clearances and will actively engage with the authorities. The closing of the acquisition is targeted for the second half of 2022.