(Bloomberg) – Holcim Ltd. will acquire Xella, a European wall systems company, in a deal worth 1.85 billion euros ($2.2 billion), expanding its building solutions business after spinning off its North American unit.
The acquisition announced Monday is Holcim's largest since its purchase of Firestone Building Products for $3.4 billion in 2021 and expands the company's offerings outside of its core cement business. With its value-over-volume strategy, Holcim also relies on more expensive, more sustainable products in order to increase margins.
The deal will expand Holcim's wall and roof business in Europe – its largest geographically. The European wall market is worth more than 12 billion euros and is expected to reach 16 billion euros by the end of the decade, it said.
Germany upswing
Xella will increase its exposure to the German residential real estate market, which is poised for an upswing, Vontobel analyst Mark Diethelm said in a statement.
Holcim made ten acquisitions in the first half of 2025. By 2030, around 4 billion to 6 billion Swiss francs ($5 billion) will be spent on large strategic mergers and acquisitions and opportunistic share buybacks. Mergers and acquisitions will largely consist of additions, but the company will also consider larger deals.
Xella, headquartered in Duisburg, forecasts net sales of around 1 billion euros for 2025 and employs around 4,000 people. Brands include Ytong, Silka, Hebel and Multipor.
Through this acquisition, Holcim is opening up new markets such as Denmark, Norway and Sweden. Cross-selling is intended to increase Holcim's sales of wall solutions including adhesives, finishes, plasters and sealants.
The transaction is expected to close in the second half of 2026, subject to customary conditions and regulatory approvals, Holcim said in a statement. It will be accretive from year one.
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