ZUG, Switzerland, January 19, 2018. As of the 28th of January 2024, /PRNewswire/ -- Holcim announces its intention to list its North American business in the US in a full capital market separation. The result of this process will be the formation of the region's leading pure-play building solutions company. It is expected that the newly listed business will be committed to driving long-term growth in the rapidly expanding North American market in order to unlock value for all stakeholders and shareholders.. It is expected that Holcim will remain included in the Swiss Market Index following the US listing of North America and will remain a leader in innovative and sustainable building solutions in the region. As part of the Board's mandate, Jan Jenisch has been assigned to lead Holcim's North American business listing in the US
As part of the Board's mandate, Jan Jenisch has been assigned to lead Holcim's North American business listing in the US
"Holcim has achieved a new level of financial performance and a superior earning profile, as well as an industry-leading margin and a strong balance sheet as a result of its strong financial performance" said Jan Jenisch, Chairman and CEO of Holcim. As a result of the success of our North American operations, we are now the region's leading pure-play building solutions company. It is through a US listing that our company will unleash its full potential to become the partner of choice for our customers in one of the most attractive construction markets in the world. Through our ability to fully capitalize on the region's infrastructure and construction boom, we will be able to accelerate growth and unlock value for our stakeholders
Through our ability to fully capitalize on the region's infrastructure and construction boom, we will be able to accelerate growth and unlock value for our stakeholders
"Holcim is committed to advancing its global leadership position in innovative and sustainable building solutions. With decarbonization and M&A being the companies' primary drivers of profitable growth, the company will continue to deliver leading margins and attractive returns for shareholders following the listing of its North American operations in the US.
"This next step of growth and value creation is only possible because of the outstanding leadership of our empowered teams around the world, which has delivered record results year after year for our organization."
Listing of North America in the United States
It is anticipated that the listed North American business will be the largest pure-play building solutions company in the region by 2023, with an estimated EBITDA1 margin of more than 27% for the period 2023-2029. The business has a proven track record of delivering exceptional profitable growth over a period of four years, with an average annual growth rate of over 20% and an over-proportional growth in EBIT of over 26%, on average, over the past two years.. Through the implementation of an accelerated growth strategy, the company intends to earn more than USD 20 billion in net sales and more than USD 5 billion in EBIT by 2030, with industry-leading margins.. The business is well known for its state-of-the-art operations with over 850 state-of-the-art roofing systems, making them the industry standard. One of the biggest players in cement, and one of the strongest players in aggregates and ready-mix concrete. Due to its leading footprint across North America, the business is in a prime position to capitalize on the strong construction spending and once-in-a-generation infrastructure investments being made in the region.
Due to its leading footprint across North America, the business is in a prime position to capitalize on the strong construction spending and once-in-a-generation infrastructure investments being made in the region.
An investment profile that will be distinct and compelling will be created by the listed company's customized capital structure and capital allocation priorities, which will be based on US Dollars. The company will be able to drive deeper strategic and operational priorities by focusing on North American customers and market opportunities through its pure-play model.
Holcim announces the listing of its North American operations in the US
In 2023, Holcim will be expected to have an EBITDA1 margin of over 23%, which will allow the company to further advance its leadership position in building solutions, with an estimated EBITDA1 margin of over 23%. By 2030, the company plans to increase net sales to around CHF 22 billion, EBIT to over CHF 4 billion, and free cash flow to over CHF 3 billion.
Aiming to capitalize on the company's exceptional financial performance, the company will further advance its leadership in decarbonization and circularity as drivers of profitable growth, enabling it to provide 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, as part of its ongoing portfolio transformation.
In addition to its well-balanced footprint and leading market positions across Europe, Latin America, Asia, Middle East & Africa, Holcim will also be able to enhance value creation with its well-balanced footprint and leading market positions post-US listing. The company will provide industry-leading margins, cash generation, and attractive shareholder returns through dividends and share buybacks, making it a compelling investment opportunity.
Details of the transaction
With the intention of separating its North American business from the rest of the group and listing it on the US market, Holcim is preparing to proceed with a full capital market separation. The transaction will take place as a spin-off, and the final structure will be revealed in the second half of this year. It is intended that Holcim will hold Capital Markets Days at the same time for both entities.
It is expected that the US listing will be completed in the first half of 2025, subject to shareholder approval at an Extraordinary General Meeting which is expected to take place in the first quarter of 2025, as well as other customary approvals.
Both Holcim and SMI will pursue tailored strategies and capital structures in order to support growth and value creation after the US listing of North America. They are expected to remain members of the Swiss Market Index. The transaction is intended to unlock value by creating two distinct and compelling investment profiles with attractive shareholder returns.
The financial advisors for the transaction are Goldman Sachs International and Perella Weinberg Partners, and the legal advisors are Skadden, Arps, Slate, Meagher & Flom LLP and Bär & Karrer AG.
Streaming webcasts
In the coming week, Holcim will be hosting three webcasts on Monday, 29 January 2024:
This presentation has been posted to the investor relations website of the company along with an accompanying press release.
Please register for the 10:00 am CET / 4:00 am ET session here if you wish to attend the analysts' conference, and here if you wish to attend the 4:00 pm CET / 10:00 am ET session if you wish to attend.
Please contact the following media contacts: +41 (0) 58 858 87 10+41 (0) 58 858 87 12 +41 (0) 79 511 17 63
With net sales of CHF 29 billion, Holcim is a leading global provider of innovative and sustainable building solutions.By 2022, there will be 2 billion people in the world. Based on its purpose to build progress for people and the planet, its 60,000 employees are dedicated to decarbonizing the building industry, while at the same time improving living standards for all.. From ECOPact to ECOPlanet, the company, a global leader in low-carbon and circular building solutions, empowers its customers to build better with less by providing a broad range of low-carbon and circular solutions.. By taking advantage of its innovative systems, such as Elevate roofing and PRB's insulation, Holcim makes buildings more sustainable in their use and contributes to energy savings and green retrofitting. In order to become a net-zero company, Holcim is putting sustainability at the core of its strategy..As part of the Science Based Targets initiative (SBTi), the 5°C targets have been validated
As part of the Science Based Targets initiative (SBTi), the 5°C targets have been validated
Find out more about Holcim by visiting our website at www.holcim.com, and by following us on our LinkedIn page.
Get Holcim's Building Progress newsletter and follow our journey to a net-zero future by signing up here.
It is important to note that this press release contains forward-looking statements that involve risks and uncertainties.. It is important to note that such forward-looking statements are not predictions of results or any other performance indicator, but rather are trends or targets, based on the circumstances, including plans, initiatives, events, products, solutions and services, as well as their development and potential.. In spite of the fact that Holcim believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions at the time of publishing this press release, investors are cautioned that these statements are not guarantees of future performance.. The actual results of Holcim may differ materially from the forward-looking statements due to a variety of risks and uncertainties, many of which are difficult to predict and are generally beyond its control, as well as a variety of other factors, including but not limited to risks related to sustainability, climate change, energy prices, raw material access, as well as the other risks described in Holcim's annual report available on its website (www.The Holcim Group.It is important to note that there are many risks and uncertainties associated with the separation of the North American business, including market conditions, implementation of our plans, and our ability to gain any of the benefits that we expect to achieve as a result of the separation, as well as the risks and uncertainties mentioned in the registration statement for the separation that will be filed with the Securities and Exchange Commission.. As a result, we caution you not to place undue reliance on forward-looking statements. It is not the responsibility of Holcim to provide updates to any forward-looking statements
It is not the responsibility of Holcim to provide updates to any forward-looking statements
This means that forward-looking statements include words and expressions such as "anticipate(s)," "expect(s)," "intend(s)," "plan(s)," "believe(s)," "plan(s)," "may," "will," "would," "could," "should," "seek," and similar expressions, as well as the negatives of these words.. Despite the fact that these statements are based on the current expectations and beliefs of management, they are subject to a number of risks and uncertainties, which can lead to actual results differing materially from those that were projected, forecasted or expected.. Despite the fact that we believe that the assumptions behind the forward-looking statements are reasonable, we cannot provide any assurance that our expectations will be met.Risks and uncertainties relating to the proposed separation that could cause actual results to differ materially from our expectations include, but are not limited to: an unexpected failure to complete, or unexpected delays in completing, the necessary actions for the proposed separation, or to obtain the necessary approvals to complete these actions; that the potential strategic benefits, synergies or opportunities expected from the separation may not be realized or may take longer to realize than expected; costs of implementation of the separation and any changes to the configuration of businesses included in the separation if implemented; the potential inability to access or reduced access to the capital markets or increased cost of borrowings, including as a result of a credit rating downgrade; the potential adverse reactions to the proposed separation by customers, suppliers, strategic partners or key personnel and potential difficulties in maintaining relationships with such persons and risks associated with third party contracts containing consent and/or other provisions that may be triggered by the proposed separation; the risk that any newly formed entity to house the North American business would have no previously established credit rating and may not have access to the capital markets on acceptable terms; unforeseen tax liabilities or changes in tax law; requests or requirements of governmental authorities related to certain existing liabilities; and the ability to obtain or consummate financing or refinancing related to the transaction upon acceptable terms or at all
Risks and uncertainties relating to the proposed separation that could cause actual results to differ materially from our expectations include, but are not limited to: an unexpected failure to complete, or unexpected delays in completing, the necessary actions for the proposed separation, or to obtain the necessary approvals to complete these actions; that the potential strategic benefits, synergies or opportunities expected from the separation may not be realized or may take longer to realize than expected; costs of implementation of the separation and any changes to the configuration of businesses included in the separation if implemented; the potential inability to access or reduced access to the capital markets or increased cost of borrowings, including as a result of a credit rating downgrade; the potential adverse reactions to the proposed separation by customers, suppliers, strategic partners or key personnel and potential difficulties in maintaining relationships with such persons and risks associated with third party contracts containing consent and/or other provisions that may be triggered by the proposed separation; the risk that any newly formed entity to house the North American business would have no previously established credit rating and may not have access to the capital markets on acceptable terms; unforeseen tax liabilities or changes in tax law; requests or requirements of governmental authorities related to certain existing liabilities; and the ability to obtain or consummate financing or refinancing related to the transaction upon acceptable terms or at all
Unless otherwise stated, these forward-looking statements are based on management's judgment as of this date, and Holcim assumes no (and disclaims any) obligation to revise or update them to reflect future events or circumstances.
It is our policy not to make any representations or warranties regarding the accuracy of any projections, statements, or information contained in this document.
It is understood and agreed that any such projections, targets, statements and information are not to be regarded as facts and that they are subject to significant business, financial, economic, operating, competitive, and other risks, uncertainties, and contingencies, many of which are beyond our control. There is no way of ensuring that any particular financial projection, range, or target will be realized, that the actual results may differ from the projected results, and that such differences may be substantial.. While all financial projections, estimates and targets are necessarily speculative, we believe that the preparation of prospective financial information involves an increasing level of uncertainty the further out the projection, estimate or target extends from the date of preparation, the greater the degree of uncertainty.. Projected, expected, and targeted results are all based on assumptions and estimates that are inherently uncertain and are subjected to a wide variety of significant business, economic, and competitive risks and uncertainties that may cause actual results to differ materially from the projections, estimates, and targets outlined in the financial projections, estimates, and targets.. It is important to remember that inclusion of financial projections, estimates, and targets in this press release should not be taken as an indication that we or our representatives consider the financial projections, estimates, and targets to be a reliable prediction of future events.
It is important to remember that inclusion of financial projections, estimates, and targets in this press release should not be taken as an indication that we or our representatives consider the financial projections, estimates, and targets to be a reliable prediction of future events.
It is important to note that this press release does not constitute, nor does it form part of, any offer or invitation (i) to sell or issue, or to solicit any offer to purchase or subscribe to, any securities of any Holcim legal entity, or (ii) to enter into any contract, agreement, or commitment with any of Holcim's legal entities.
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