By Sarah Sloat
Swiss chemicals company Sika AG said Thursday that it would acquire MBCC Group from an affiliate of Lone Star Funds, in a transaction with an enterprise value of 5.5 billion Swiss francs ($5.99 billion).
MBCC, formerly BASF Construction Chemicals, is based in Germany. The deal will be highly complementary across most of Sika's core technologies, applications, and solutions, Sika said.
The Swiss company expects annual synergies between CHF160 million and CHF180 million from the deal. It will be accretive to Sika's earnings per share from the first full year post closing, slated for the second half of 2022, Sika said.
MBCC Group, based in Germany, has approximately 7,500 employees and operations in more than 60 countries. In 2021, the company is expected to generate net sales of CHF2.9 billion, according to Sika.
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(END) Dow Jones Newswires