The Swiss construction materials manufacturer, LafargeHolcim (known also as Holcim Group), announced on Monday plans to introduce its North American subsidiary to the U.S. stock market through a full capital market separation. This move aims to establish a distinct company focusing on building solutions within the region.
The proposed public listing is planned to take the form of a spin-off, with an expected completion date in the first half of 2025. After the listing, Holcim's North American branch is expected to retain its position in the Swiss Market Index.
Holcim CEO, Jan Jenisch stated, "Our North American division's success has set it up to be the top stand-alone building solutions company in the region. A U.S. listing will allow us to fully unleash this potential, enabling us to be the preferred partner for our clients in one of the world's premier construction markets."
This division has been a profitable asset for Holcim, boasting an average annual growth rate surpassing 20% and an EBIT (Earnings Before Interest and Tax) growth rate exceeding 26% over the last four years.
Following its projected listing, Holcim's North American business aims to surpass $20 billion in net sales and achieve over $5 billion in EBIT by 2030. The company also plans to enhance its business even more, with a projected EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin of over 23% by 2023. Their ambitions also include growing net sales to approximately CHF 22 billion (Swiss Francs), and EBIT to more than CHF 4 billion by 2030.
