Holcim Ltd. Chairman Jan Jenisch convened investors, fund managers and financial analysts in New York City for “Building North America,” a March 25 presentation outlining the portfolio, leadership, market, organic growth, and merger and acquisition prospects for Amrize.
Addressing the rationale for a business spin-off from the Swiss cement, aggregate and concrete giant, he opened a question-and-answer session declaring, “North America is too successful to be a subsidiary of Holcim.” Citing a strong balance sheet, he concluded, “We have a lot of firepower to do what we need to do to create shareholder value.”
With 2024 sales of $11.7 billion, Amrize comprises U.S. and Canadian cement, aggregate, concrete, roofing, sheathing and insulation production assets to be spun off from Holcim Ltd. The investor presentation anticipates a New York Stock Exchange listing for Amrize by mid-year, pending Holcim shareholder spin-off plan approval during a mid-May annual general meeting.
Jenisch is set to transition to Amrize chairman and CEO, overseeing Building Materials and Building Envelope businesses with respective 2024 revenues of $8.3 billion and $3.4 billion. Each is positioned to sustain recent years’ financial performance and revenue growth attributable to internal measures, strong material pricing – near double digits in the case of cement and aggregates – and favorable construction market conditions.
In core Building Materials segments, Jenisch told “Building North America” participants how Amrize will shore up existing cement output potential. Best illustrating that strategy is a current upgrade to bring annual capacity at the flagship Ste. Genevieve plant in Missouri to 5.6 million tons by late 2025. The company will also seize opportunities in the far more fragmented aggregates and ready mixed concrete segments.
Amrize Building Materials will span operations presently under Holcim (US), Lafarge Canada and Holcim – ACM Management: 18 cement and 55 cementitious material plants plus 141 terminals; 462 aggregate operations; plus, 269 ready mixed, 35 concrete products and 50 asphalt plants. Upon the Amrize launch, Jaime Hill will shift from his current role as Holcim North America region head to Building Materials president. His Building Envelope counterpart, Jake Gosa, joins Amrize after a lengthy tenure at Beacon Building Products. Building Envelope has emerged from a charter 2021 acquisition in flat-roofing materials, Firestone Building Products, plus bolt-on deals in commercial and residential enclosure products.