Sika bulks up mortar volume in $2.5 billion deal for Parex

Sources: Sika AG, Baar, Switzerland; CP staff

The Swiss parent of New Jersey-based admixture and construction products supplier Sika Corp. projects a second or third quarter closing on Parex, a key player in facade, technical and waterproofing mortars, plus tile adhesives. Sika AG will acquire the business, which reported 2018 sales of $1.1 billion, from a fund of CVC, a global private equity and investment advisory firm.  

Parex participates in all phases of the construction life cycle and has what Sika officials note is a particularly strong presence in distribution channels, combining recognized brands with research & development expertise and technical excellence. The company has 74 plants across 23 countries, and key positions in the United States, United Kingdom, France and five other core geographies. The acquisition will strengthen Sika’s leadership in construction chemicals and industrial adhesives; more than double its highly profitable mortar business, toward $2.3 billion; and, propel annual sales past $8 billion. 

“Parex is an excellent company with well recognized brands and an impressive performance track record,” says Sika CEO Paul Schuler. “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 facade business can be leveraged in the entire Sika world.”

Under five years of CVC Fund V ownership, Parex entered three additional countries, opened 16 new plants, effected 11 bolt‐on acquisitions, and built an international research & development center. “Sika represents a great platform to continue to deliver on Parex’s ambitious growth plan and the combination creates exciting opportunities in terms of offering new solutions to our customers and continuing our geographic expansion,” affirms Parex CEO Eric Bergé.