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Jan Jenisch, Chairman and CEO: “Holcim has 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 M&A 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.”
US listing of North America
The listed North American business will be the leading pure-play building solutions company in the region, with an estimated EBITDA1 margin of more than 27% for 2023. This business has a proven track record of outstanding profitable growth with an average annual growth rate of over 20% and an over-proportional growth in EBIT of more than 26%, on average, over the past four years. It will execute an accelerated growth strategy to achieve more than USD 20 billion in net sales and more than USD 5 billion in EBIT with industry-leading margins by 2030. With over 850 state-of-the-art operations, this business is a leader in advanced roofing systems, the no. 1 player in cement, and strongly positioned in aggregates and ready-mix. 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.
The listed company will pursue a US Dollar-based tailored capital structure and capital allocation priorities, creating a distinct and compelling investment profile. With its pure-play focus on North American customers and market opportunities, it will drive deeper strategic and operational priorities.
Holcim post US listing of North America
Holcim post US listing of North America will advance its leadership position in innovative and sustainable building solutions, with an estimated EBITDA1 margin of over 23% for 2023. The company will aim to grow net sales to around CHF 22 billion, EBIT to more than CHF 4 billion, and free cash flow to more than CHF 3 billion by 2030.
Building on its superior financial performance, the company will accelerate its leadership in decarbonization and circularity as drivers of profitable growth, advancing sustainable building solutions for its customers. It will continue its portfolio transformation with disciplined value-accretive transactions, including expanding into the attractive Solutions & Products segment, focusing on advanced mortars and insulation for repair and refurbishment.
Holcim post US listing will strengthen its ability to maximize value creation with its well balanced footprint and leading market positions across Europe, Latin America and Asia, Middle East & Africa. It will deliver industry-leading margins, cash generation and attractive shareholder returns through dividends and share buybacks, offering a compelling investment profile.
Transaction Details
Holcim is preparing a full capital market separation and US listing of its North American business. 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. Holcim plans to hold Capital Markets Days for both entities in the same timeframe.
The US 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.
Holcim post US listing of North America is expected to remain included in the Swiss Market Index. Both companies will pursue tailored strategies and capital structures to support growth and value creation. The transaction is intended to unlock value by creating two distinct and compelling investment profiles with attractive shareholder returns.
Goldman Sachs International and Perella Weinberg Partners are acting as financial advisors and Skadden, Arps, Slate, Meagher & Flom LLP and Bär & Karrer AG are serving as legal advisors.
