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Key Takeaways
- Swiss cement maker Holcim Ltd. is creating a separate U.S.-listed entity by spinning off its North American building solutions unit.
- This new company reportedly will be valued at $30 billion, and is expected to be listed on a U.S. exchange by the first half of 2025.
- The North American Holcim unit accounted for about a quarter of the company’s sales in the first nine months of the fiscal year.
Swiss cement maker Holcim Ltd. is planning to spin off its North American unit and list it in the U.S., it said on Sunday.
The new entity will be a pure-play North American building solutions company, reportedly valued at about $30 billion, current Chief Executive Officer (CEO) Jan Jenisch said.
Jenisch has been tasked with leading the planned U.S. listing and will be replaced as CEO by Miljan Gutovic starting May 1. Meanwhile, Jenisch will continue in his role as chairman.
One of the world’s biggest cement makers, Holcim already is focused on North America and has five research & development (R&D) centers in the region. The new company is targeting net sales of $20 billion and operating profit of more than $5 billion by 2030, Holcim said.
The unit’s earnings before interest and tax (EBIT) has grown more than 26% annually on average in the last four years, Holcim said, noting that the North American business made up around a quarter of the group’s sales in the first nine months of 2023.
The U.S. listing is expected to be completed by the first half of 2025.