Holcim intends to list North American business in U.S. – TipRanks Financial Blog

Holcim announces its intent to list its North American business in the U.S. with a full capital market separation. “This process will create the leading pure-play building solutions company in the region. The newly-listed business will be committed to driving long-term growth in the rapidly expanding North American market and unlocking value for all its stakeholders. Holcim post US listing of North America is expected to remain included in the Swiss Market Index and the leader in innovative and sustainable building solutions. The Board has tasked Jan Jenisch to lead the planned US listing of Holcim’s North America business,” the company stated. “The listed North American business will be the leading pure-play building solutions company in the region, with an estimated EBITDA margin of more than 27% for 2023. This business has a proven track record of outstanding profitable growth with an average annual growth rate of over 20% and an over-proportional growth in EBIT of more than 26%, on average, over the past four years. It will execute an accelerated growth strategy to achieve more than $20B in net sales and more than $5B in EBIT with industry-leading margins by 2030. With over 850 state-of-the-art operations, this business is a leader in advanced roofing systems, the no. 1 player in cement, and strongly positioned in aggregates and ready-mix. Building on its leading footprint, the North American business is ideally positioned to capitalize on the strong construction spend and once-in-a-generation infrastructure investments across the region. The listed company will pursue a US Dollar-based tailored capital structure and capital allocation priorities, creating a distinct and compelling investment profile. With its pure-play focus on North American customers and market opportunities, it will drive deeper strategic and operational priorities,” the company added. Holcim is preparing a full capital market separation and U.S. listing of its North American business. The transaction is intended to be executed as a spin-off, with the final structure to be communicated in the second half of this year. Holcim plans to hold Capital Markets Days for both entities in the same timeframe. The U.S. listing is expected to be completed in the first half of 2025. It will be subject to shareholder approval at an Extraordinary General Meeting expected in the first quarter of 2025, as well as other customary approvals. Holcim post U.S. listing of North America is expected to remain included in the Swiss Market Index. “Both companies will pursue tailored strategies and capital structures to support growth and value creation. The transaction is intended to unlock value by creating two distinct and compelling investment profiles with attractive shareholder returns,” the company said.

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