Holcim buys German walling system specialist for $2.15bn

Holcim, a Swiss-based global building materials company, has announced that it has signed a binding agreement to acquire Xella, a European leader in sustainable and innovative walling systems for transaction value of €1.85 billion ($2.15 billion).

Home to premium sustainable brands such as Ytong, Silka, Hebel and Multipor and a pioneer in digitally supported construction processes with proprietary platforms blue.sprint and Building Companion, Xella is expecting a net sales of around €1 billion ($1.16 billion) for 2025. 

Headquartered in Duisburg, Germany, the company has more than 4,000 employees, and is present in 21 of Europe’s most attractive markets. 

On the landmark decision, Holcim CEO Miljan Gutovic said: "This strategic acquisition is a milestone in our vision to be the leading partner for sustainable construction, accelerating Holcim’s high-value Building Solutions in line with our NextGen Growth 2030 strategy."

"Xella will add to our customer offering in the highly attractive €12 billion+ walling market, with cross-selling and systems-selling opportunities. I look forward to welcoming Xella’s 4,000 employees," he stated.

The transaction value of €1.85 billion, he stated, represents a pro forma 2026 ebitda multiple of 8.9x, or 6.9x after run-rate synergies of €60 million realised in year three. 

It is earnings per share (EPS) and free cash flow accretive in year one and return on invested capital (ROIC) accretive in year three, he noted.

The transaction is in line with Holcim’s commitment to financial discipline and growth-focused capital allocation. It is subject to customary conditions and regulatory clearances, and expected to close in H2 2026, he added.

Headquartered in Zug, Holcim is the leading partner for sustainable construction with net sales of CHF 16.2 billion in 2024, creating value across the built environment from infrastructure and industry to buildings. It has more than 48,000 employees in 45 attractive markets – across Europe, Latin America and Asia, Middle East & Africa.-TradeArabia News Service