Ineos, the chemicals company built by British billionaire Jim Ratcliffe, has agreed to buy assets that Sika AG is selling to appease antitrust regulators.
(Bloomberg) — Ineos, the chemicals company built by British billionaire Jim Ratcliffe, has agreed to buy assets that Sika AG is selling to appease antitrust regulators.
A subsidiary of Ratcliffe’s firm will acquire MBCC Group’s admixtures business in the US, Canada and Europe including the UK, and its entire business in Australia and New Zealand, Sika said Monday confirming an earlier Bloomberg News report.
The assets generated net sales of about 920 million Swiss francs ($995 million) by the end of 2022, the statement showed, though details of the price consideration were not disclosed. The deal values the assets at about $750 million, people familiar with the matter have said.
Sika is selling the assets as it seeks to gain regulatory approval for its largest-ever transaction, the 5.5 billion Swiss-franc takeover of German rival MBCC. The Swiss company’s admixture business makes substances that can be added to concrete to modify its properties.
The disposal and the MBCC transaction are subject to regulatory approval and slated to be completed in the first half of 2023, the release showed. Sika said it expects annual synergies of around 160 million to 180 million Swiss francs after deal completion.
Shares of Sika have risen 11% in Zurich trading this year, giving the company a market value of 37.9 billion francs.
Ineos beat out private equity firms including Cinven, CVC Capital Partners and Clayton, Dubilier & Rice, Bloomberg News has reported.
Sika in September relaunched the sale of the admixtures business in North America, Europe and Australia after an attempt to sell it piecemeal received antitrust pushback. The UK’s merger watchdog had launched an in-depth investigation into the MBCC deal over concerns it may weaken national competition in the supply of chemical admixtures.
The assets Ineos will acquire include production sites and sales offices in 36 countries with over 1,600 employees, the release showed.
Sika, which makes sealants, mortars and other building adhesives, has been stepping up its pace of dealmaking. Its chief executive officer, Thomas Hasler, is seeking to tap demand for new materials that support sustainability and the shift to electric vehicles.
Ratcliffe has been expanding his business empire beyond the chemicals industry, including an off-road vehicle to compete with Land Rover’s Defender. Ineos has invested in cycling, sailing and motorsport teams over the past decade, though attempts to break into Premier League football have been less successful.
–With assistance from Elisabeth Behrmann.
(Updates throughout with detail from company statement.)
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