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Holcim, the Swiss building materials company, has acquired German walling specialist Xella for EUR 1.85 billion (around USD 2.16 billion) to strengthen its presence in Europe's growing refurbishment market. Xella, known for brands such as Ytong, Silka, Hebel, and Multipor, serves 21 European countries and employs over 4,000 staff. The acquisition, Holcim's largest in over four years, supports the company's strategy of focusing on sustainable construction and its higher-growth building products business. The deal is expected to be earnings accretive in its first year.
Holcim has completed the acquisition of Xella, a German manufacturer of sustainable walling systems, for EUR 1.85 billion, approximately USD 2.16 billion. This purchase reflects Holcim's strategy to strengthen its building products business, which includes roofing, insulation, and prefabricated systems, and is positioned for higher growth compared with traditional cement and aggregates. Advertisement
Xella produces blocks under well-known brands such as Ytong, Silka, Hebel, and Multipor, widely used for heat and sound insulation. The company operates in 21 European markets and employs over 4,000 people. Xella is projected to achieve net sales of around EUR 1 billion this year. Holcim will finance the acquisition using a combination of cash and debt.
Holcim's CEO, Miljan Gutovic, highlighted that this deal is part of a broader focus on sustainable construction and the refurbishment market in Europe, valued at about EUR 250 billion annually. Renovation needs are rising as cities aim to improve energy efficiency and sound insulation standards, while existing buildings will largely remain in use through 2050. He noted that new home construction is also on the rise in Europe, where an estimated shortfall of 10 million dwellings persists.
The acquisition is expected to be earnings accretive in the first year, with Holcim paying a multiple of 8.9 times Xella's projected 2026 earnings before interest, taxes, depreciation, and amortization. Gutovic stated that cost savings could be achieved through increased supplies of raw materials like cement, and confirmed that no job cuts are planned. Regulatory approvals are still pending, with the deal expected to close in the second half of 2026.
Source: Reuters
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