Sika makes takeover offer for Parex

Swedish chemicals group Sika has made an offer to acquire French rival Parex for 2.5bn Swiss francs (£2bn) from current owner CVC Capital Partners.

Sika said with the acquisition it was seeking to strengthen its leading position in construction chemicals and industrial adhesives, boosting sales in excess of 8bn Swiss francs.

It will also deepen and widen Sika’s growth platform and its mortar business, which is a key growth technology for the group and one of its important earning contributors, will more than double in size to CHF 2.3bn.

In 2018 Parex generated sales of CHF 1.2bn and an expects an EBITDA of around CHF 195m.

Paul Schuler, CEO of Sika said: “Parex is an excellent company with well recognized brands and an impressive performance track record. The businesses of Parex and Sika are highly complementary. Using Parex technologies as a growth platform in all our 101 countries and cross-selling of our products to the well established distribution channels of Parex will generate great profitable growth.

“Parex’s excellent facade business can be leveraged in the entire Sika world. We warmly welcome all employees of Parex to the Sika Family. We look forward to working with the Parex team and we are excited about expanding our joint business operations.”

Sika shares fell more than 2% in early trading and is now falling 3.51%.