Sika announced the deal with Ineos in early January, noting that the divestment was part of the remedy process to gain regulatory approval of its purchase of MBCC, formerly BASF Construction Chemicals.

Cinven plans to wrap up the acquisition in the 2023 first half, if EU antitrust authorities approve. Financial and transaction parameters, including the timing for closing the divestment as well as the MBCC acquisition, remain largely unchanged. Sika said the changed plans have the British regulator’s blessing.

Operating under the Master Builders brand, the Mannheim, Germany-based activities, with more than 1,600 employees and 35 manufacturing sites across Europe, the UK, the US, Canada, Australia and New Zealand, generated annual sales of 920 million Swiss francs ($1 billion) in 2022.

The concrete additives manufacturer touts its portfolio as offering sustainable solutions in the form of value-added technology and chemistry expertise to improve the performance of construction materials and to enable the reduction of CO₂ emissions in their production.

When the former BASF business is integrated, Sika said it expects to generate annual synergies of 160 to 180 million Swiss francs. “The fact that we reached an agreement with Cinven without material changes underlines once more the attractiveness of the chemical admixture business,” said Thomas Hasler, Sika’s CEO.

Saying the MBCC admixture assets “perfectly complement” the portfolio of the Cinven fund, Pontus Pettersson, partner at the private equity group, said the deal will boost the investor grouping’s footprint in the construction market and boost its capabilities with renowned brands.

Cinven also pointed to the “significant expertise” it gained in the admixtures market through its investment in Chryso. Under the investor’s ownership, it said, “Chryso grew to become a leading player in the admixtures market.”

Author: Dede Williams, Freelance Journalist