Swiss cement conglomerate Holcim has agreed to acquire German building materials manufacturer Xella for €1.85 billion, marking a significant strategic move in the European construction sector. The transaction, announced on Monday, is expected to be finalized in the second half of 2026, pending approval from relevant regulatory authorities. Xella, headquartered in Duisburg, Germany, is a leading European provider of wall systems with prominent brands including Ytong, Silka, Hebel, and Multipor.
The acquisition represents a major step in Holcim's vision to become the leading partner for sustainable construction. Miljan Gutovic, CEO of Holcim, described the deal as a "milestone" that accelerates the expansion of the company's value-added Building Solutions segment in line with its "NextGen Growth 2030" strategy. Xella employs more than 4,000 people across 21 European markets and is projected to generate approximately €1 billion in revenue for 2025, positioning it as a significant addition to Holcim's portfolio.
Holcim expects the acquisition to create substantial financial benefits, with €60 million in recurring EBITDA synergies anticipated by the third year following completion. The transaction is projected to have a positive impact on earnings per share and free cash flow from the first year, with the purchase price representing a pro-forma EBITDA multiple of 8.9x for 2026, or 6.9x after accounting for synergies. The deal also aligns with Holcim's commitment to financial discipline and growth-oriented capital allocation.
Beyond financial metrics, the acquisition strengthens Holcim's position in the sustainable building materials market, valued at over €12 billion for wall solutions alone. Xella brings digital construction platforms blue.sprint and Building Companion to the combined entity, enhancing Holcim's capabilities in digitally-supported construction processes. The integration is expected to create cross-selling and system sales opportunities, further solidifying Holcim's competitive position in the evolving construction industry landscape.
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