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Holcim to acquire Germany's Xella in €1.85bn deal

Building materials giant Holcim has signed a binding agreement to acquire Xella, a European leader in sustainable and innovative walling systems with projected 2025 net sales of around €1bn.

  • Holcim Ltd.
  • 20 October 2025 08:36:00

Source: Sharecast

Holcim said on Monday that Xella, a pioneer in digitally supported construction processes based in Germany, had been acquired for €1.85bn, representing a pro forma 2026 underlying earnings multiple of 8.9x, or 6.9x after run-rate synergies of €60m realised in year three.

The Swiss firm also noted that the acquisition would be earnings per share and free cash flow accretive in year one and return on invested capital accretive in year three.

Holcim added that the transaction was in line with its commitment to financial discipline and growth-focused capital allocation, and added that, subject to customary conditions and regulatory clearances, it was expected to close in H226.

Chief executive Miljan Gutovic said: "This strategic acquisition is a milestone in our vision to be the leading partner for sustainable construction, accelerating Holcim's high-value building solutions in line with our NextGen Growth 2030 strategy.

"Xella will add to our customer offering in the highly attractive €12bn+ walling market, with cross-selling and systems-selling opportunities."

As of 0835 BST, Holcim shares were up 1.27% at CHF 66.74 each.

Reporting by Iain Gilbert at Sharecast.com

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