Holcim announced its intent to publicly list its North American business in the United States with a full capital market separation. This process “will create the leading pure-play building solutions company in the region,” the company stated.
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’s post-U.S. 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 U.S. listing of Holcim’s North America business.
Jan Jenisch, chairman and CEO stated, “Holcim has reached a new level of financial performance and a superior earnings profile with industry-leading margins and a strong balance sheet. The success of our North American business makes it the leading pure-play building solutions company in the region. With a US 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. As we fully capitalize on the region’s infrastructure and construction boom, we will accelerate growth and unlock value for our stakeholders.
“Holcim’s post-U.S. listing of North America will further advance its leadership in innovative and sustainable building solutions. With decarbonization and M&A as drivers of profitable growth, the company will continue to deliver leading margins and attractive shareholder returns.
“This next step of growth and value creation is possible thanks to the outstanding leadership of our empowered teams around the world delivering record results year after year.”
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, the company stated. “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 $20 billion in net sales and more than $5 billion in EBIT with industry-leading margins by 2030.
“With more than 850 state-of-the-art operations, this business is a leader in advanced roofing systems, the number-one 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 U.S.-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 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.