Holcim to list North American business in the US
Company announces full capital market separation and US listing of its North American business
HOLCIM have announced their intention to list their North American business in the US with a full capital market separation, a process that will create the leading pure-play building solutions company in the region. The newly listed business will look to drive long-term growth in the rapidly expanding North American market, unlocking value for all its stakeholders.
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 and the US listing expected to be completed in the first half of 2025, subject to shareholder approval at an Extraordinary General Meeting in the first quarter of 2025, as well as other customary approvals.
With more than 850 state-of-the-art operations, the North American business is the leading player in cement and strongly positioned in aggregates and ready-mixed concrete. Building on this footprint, Holcim say the business is well positioned to capitalize on the strong construction spend and once-in-a-generation infrastructure investments across the region.
The transaction is intended to unlock value by creating two distinct and compelling investment profiles with attractive shareholder returns. Holcim post US listing of North America is expected to remain included in the Swiss Market Index, with both companies pursuing tailored strategies and capital structures to support growth and value creation. The board has tasked Holcim chairman and chief executive officer Jan Jenisch with leading the planned US listing of the North American business.
Mr Jenisch said: ‘Holcim have reached a new level of financial performance and a superior earnings profile with industry-leading margins and a strong balance sheet. The success of our North American business makes it the leading pure-play building solutions company in the region. With a US 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.
‘Holcim post US listing of North America will further advance its leadership in innovative and sustainable building solutions. With decarbonization and mergers and acquisitions as drivers of profitable growth, the company will continue to deliver leading margins and attractive shareholder returns.
‘This next step of growth and value creation is possible thanks to the outstanding leadership of our empowered teams around the world delivering record results year after year.’
With an estimated EBITDA margin of more than 27% for 2023, the North American business has a proven track record of outstanding profitable growth with an average annual growth rate of more than 20% and an over-proportional growth in EBIT of more than 26%, on average, over the past four years. Post listing it will execute an accelerated growth strategy to achieve more than US$20 billion in net sales and more than US$5 billion in EBIT with industry-leading margins by 2030.
Holcim post US listing of North America will accelerate their leadership in decarbonization and circularity as drivers of profitable growth, advancing innovative and sustainable building solutions. With a well-balanced footprint and leading market positions across Europe, Latin America, and Asia, Middle East and Africa, and an estimated EBITDA margin of more than 23% for 2023, the company will aim to grow net sales to around CHF22 billion, EBIT to more than CHF4 billion, and free cash flow to more than CHF3 billion by 2030.
