Gypsum industry news

Switzerland: On 15 January 2015, the Swiss National Bank (SNB) abandoned the Euro1.20 cap on the Swiss Franc, causing market turmoil. However, deals involving domestic companies Holcim and Sika are expected to survive the impact of the shock decision.

Bigger deals are insulated against the effects of the sudden surge in the value of the Swiss currency because the companies involved are able to to buy insurance to protect them against such moves. However, some bankers said that the volatility introduced by the SNB decision to scrap the cap after three years could dampen deal-making in the longer term.

France's Saint-Gobain, which is buying Sika in a Euro2.71bn (2.75bn Swiss Franc) deal and does most of its business in Euros, said that it had covered itself against exchange rate moves.

Sika was one of the companies caught up in a 10% all-in Swiss blue chip stocks on fears over the impact on their exporting power. Sika was down by 7.5% at one point.

France/Switzerland: Saint-Gobain plans to acquire a controlling stake in Sika, a construction chemicals producer. The transaction involves Saint-Gobain's purchase of Schenker Winkler Holding AG, which owns 16.1% of Sika's capital and 52.4% of voting shares, for Euro2.3bn.

After the acquisition, Saint-Gobain will be able to fully-consolidate Sika into its operations, which will have a positive impact on net income in the year after consolidation. Saint-Gobain Group does not intend to make an offer for the remaining shares of Sika.

Sika has 16,000 employees in 84 countries. Its total sales in 2013 amounted to Euro4.3bn. It has experienced an average of 8%/yr growth in 2007-2013. Given the similarity in the activities of Sika and Saint-Gobain, it is expected that the acquisition will generate Euro100m in synergies from the second year of consolidation (2017) and Euro180m by 2019.

The deal requires the permission of the competent antitrust authorities and is expected to be completed no later than the second half of 2015.

Switzerland/UK: Swiss-based Sika, which produces additives for the gypsum and cement industries, has acquired Everbuild Building Products Ltd, the UK's largest independent manufacturer of sealants, adhesives and chemicals for the construction industry. Everbuild is located in Leeds with annual sales revenue of Euro73m and a workforce of 270 employees.

Everbuild, founded in 1994, will now operate as a subsidiary of Sika UK and will be led by the existing management team. Its founder David Seymour will stay with the company to drive the continued success of the business and ensure a smooth transition. "With Sika we have the possibility to further grow our business and to benefit from the broad research and development capabilities for further product innovation," said Seymour.

Jan Jenisch, CEO of Sika, said, "We are very proud to welcome the successful team of Everbuild to the Sika family. The acquisition will give us a strong position in the UK distribution market and offers considerable potential to further leverage Everbuild's sales channels with Sika's product range."