Sources: Holcim Ltd., Zug, Switzerland; CP staff
With an eye to unlocking North American asset value, Holcim Ltd. plans a 2025 spin off of its namesake US and Building Envelope plus Lafarge Canada Inc. operations, the new entity likely listed on the New York Stock Exchange. Across 850-plus sites and a payroll north of 16,000, the three businesses hold top five U.S. and Canadian market positions in cement, aggregates and ready mixed concrete, along with key stakes in commercial and residential roofing. A full capital market separation from sister units in Latin America, Europe and other overseas markets, Holcim Ltd. notes, will yield a listed company committed to driving long-term growth in rapidly expanding North America, well positioned to fully capitalize on the region’s infrastructure and construction boom.
Holcim US, Holcim Building Envelope and Lafarge Canada yield an especially uniform sales profile.
“Holcim has reached a new level of financial performance and a superior earnings profile with industry-leading margins and a strong balance sheet,” says Chairman Jan Jenisch. “The success of our North American business makes it the leading pure-play building solutions company in the region. With a U.S. listing, we will unleash its full potential to be the partner of choice for our customers in one of the world’s most attractive construction markets.”
“This business has a proven track record of outstanding profitable growth with an average annual growth rate of over 20 percent and an over-proportional growth in EBIT of more than 26 percent, on average, over the past four years,” he adds. “It will execute an accelerated growth strategy to achieve more than $20 billion in net sales and more than $5 billion in EBIT with industry-leading margins by 2030