Holcim to Launch Independent North American Division with $30 Billion U.S. Market Debut
Swiss cement giant Holcim Ltd. is set to establish a standalone U.S.-listed company by spinning off its North American division, targeting a valuation near $30 billion.
Highlights
- Holcim Ltd., a leading Swiss cement manufacturer, is preparing to spin off its North American building solutions segment into a separate publicly traded company in the U.S.
- The newly formed entity is anticipated to have a valuation of approximately $30 billion and aims for a U.S. stock exchange listing by mid-2025.
- In the first nine months of the fiscal year, Holcim's North American division represented roughly 25% of the company’s total sales.
Holcim Ltd., headquartered in Switzerland, announced plans on Sunday to spin off its North American unit and list it independently on a U.S. exchange.
The spin-off will create a dedicated North American building solutions firm, valued near $30 billion, according to current CEO Jan Jenisch.
Jenisch will oversee the U.S. listing process before stepping down as CEO on May 1, with Miljan Gutovic succeeding him. Jenisch will continue serving as chairman.
As one of the largest global cement producers, Holcim already emphasizes its North American operations, which include five research and development centers across the region. The new company targets $20 billion in net sales and an operating profit exceeding $5 billion by 2030.
Holcim reported that the North American segment’s earnings before interest and taxes (EBIT) have grown at an average annual rate exceeding 26% over the past four years. This division accounted for about a quarter of Holcim’s sales during the first nine months of 2023.
The spin-off and U.S. stock listing are expected to be finalized by the first half of 2025.
Explore useful articles in Company News as of 03-02-2024. The article titled " Holcim to Launch Independent North American Division with $30 Billion U.S. Market Debut " offers in-depth analysis and practical advice in the Company News field. Each article is carefully crafted by experts to provide maximum value to readers.
The " Holcim to Launch Independent North American Division with $30 Billion U.S. Market Debut " article expands your knowledge in Company News, keeps you informed about the latest developments, and helps you make well-informed decisions. Each article is based on unique content, ensuring originality and quality.