Holcim's Jan Jenisch intends to “create two independent champions” with the North American spinoff. Lionel Ng/Bloomberg via Getty Images
Holcim, the world's largest cement maker, said Sunday it plans to spin off its fast-growing North American business to pave the way for a U.S. listing with a market capitalization of more than $30 billion next year.
The Swiss building materials maker also appointed European director Mirjan Gutovic as chief executive officer. He will succeed Jan Jenisch, who will remain chairman. The executive changes will take effect from May 1st.
In a conference call following the announcement, Jenisch said a valuation of more than $30 billion is a “reasonable expectation” for the division. Holcim's stock price soared 38% last year, reaching its highest level since 2015 in December. Friday's closing price was 64.20 francs.
Jenisch told reporters that the spinoff “should be a very value-creating move from our side for our shareholders.” “We now have two independent champions.”
The separation will bring Zug, Switzerland-based Holcim back to a period of acquisitions around the world stemming from differences in regulatory regimes in North America and Europe. Genisch said North America had $11 billion in sales last year. In 2022, this region generated more than a third of the company's revenue.
The U.S. market is growing rapidly as builders race to solve a chronic shortage of single-family homes and meet regulatory pressures for more energy-efficient buildings. The division expanded through an acquisition spree that expanded its range of building materials offerings.
Jenisch said it will take about 15 months to list 100% of the business on the New York Stock Exchange. The current plan is for all Holcim shareholders to receive a stake after the transaction (one share in the European business and one share in the U.S. business).
The management team, including the US CEO, will be decided between now and early 2025, he added.
Asked about his future role in the U.S. business, he said: “I will decide later which position is right for me.”
Under Jenisch's leadership, Holcim last year agreed to acquire U.S. commercial roofing systems maker Durolast in a deal valued at $1.3 billion, and in 2021 it acquired Bridgestone's Firestone Building Products division. Acquired for $3.4 billion.
Mr. Gutovic has been a member of Holcim's Executive Committee since 2018 and has led the company's efforts to reduce its carbon footprint. Previously, he held various management positions at the Swiss specialty chemical company Sika AG.
Since joining the company in 2017, Jenisch has steered the company away from traditional cement as builders face increasing pressure to reduce their carbon footprint. At the same time, Holcim exited its cement business in some emerging markets, including selling its India operations to billionaire Gautam Adani for $6.4 billion.
Gutovic said earlier this month that Holcim was considering 20 more bolt-on acquisitions in 2024 and did not rule out another transformative deal. Holcim is scheduled to announce its financial results on February 28th.
— With assistance from Bastian Benrath
