Sika makes binding offer to acquire Parex from CVC Fund V

Sika has made a binding offer to acquire Parex from current owner CVC Fund V. Parex is a leading manufacturer of mortar solutions, including facade mortars, tile adhesives, waterproofing and technical mortars.

In 2018, the company generated CHF 1.2 billion in sales and expects EBITDA of approximately CHF 195 million. With its expertise in mortar solutions for renovation and new construction, Parex participates in all stages of the building life cycle.

Parex has a strong presence combining recognized brands in distribution channels with R&D expertise and technical excellence. It holds key positions locally in 23 countries across 8 major geographies and operates 74 facilities worldwide.

Sika CEO Paul Schuler: "Parex is an excellent company with recognized brands and an impressive track record. The businesses of Parex and Sika are highly complementary.

Using Parex technologies as a growth platform in all 101 countries where we operate, and cross-selling our products through Parex's established distribution channels will deliver significant profitability gains.

Parex's excellent facade solutions will be available across the entire Sika world. We welcome all Parex employees to the Sika family. We look forward to working with the Parex team and are excited to expand our joint activities," he said.

Parex CEO Eric Bergé: "The Parex team, under the ownership of CVC Fund V, has delivered very strong performance, growing sales from EUR 750 million in 2013 to over EUR 1 billion.

Over this five-year period, Parex entered 3 new countries and opened 16 new facilities, completed 11 strategic acquisitions and established a new international R&D center. Sika provides an excellent platform for Parex to continue its ambitious growth plans, and this combination creates exciting new opportunities to deliver new solutions to our customers and continue our geographic expansion.

I thank our sponsor, CVC Capital Partners, our teams worldwide and our customers for their trust and support over these past five years, and we look forward to working with Sika in the future."

With this acquisition, Sika will further strengthen its leading position in construction chemicals and industrial adhesives and will reach sales of over CHF 8 billion. This acquisition will deepen and expand Sika's growth platform.

The size of the mortar business, an important growth technology for the group and one of the significant value contributors, will more than double to CHF 2.3 billion. Parex's strong position in distribution channels will create new business opportunities across Sika's product range.

This acquisition will enable Parex to gain access to Sika's established direct sales channels, while Sika will participate in Parex's expertise in facade and tile assembly and in these growing, attractive market segments.