Sika loads mortar volume in $2.5 billion Parex deal

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 façade, 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 MORTAR PHOTO: January 2019 Sika AG investor presentation

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 deliver on Parex’s ambitious growth plan, and the combination creates exciting opportunities in terms of offering new solutions to customers and continuing our geographic expansion,” affirms Parex CEO Eric Bergé

“The[se] sources comprise another powerful tool in our on-going effort to expand the volume and improve the supply reliability of high quality fly ash for U.S. concrete markets,” says Boral Resources West Region Vice President Jimmy Lambert. “This action is a key component in a strategy that includes materials blending, harvesting previously stored ash, and utilizing a range of ash beneficiation technologies to continue improving on what is already the largest and most robust fly ash supply network in the nation.”

The West Region is part of a Boral Resources fly ash processing and distribution network spanning 135 locations in 45 states.


Bill Fedorka