Holcim to Acquire Xella for €1.85 Billion to Boost Sustainable Construction Portfolio

Holcim AG (SIX:HOLN) has signed a binding agreement to acquire Xella, a leading European provider of sustainable walling systems, in a deal valued at €1.85 billion. The acquisition marks a significant step in Holcim’s strategy to strengthen its position in the fast-growing sustainable construction sector under its NextGen Growth 2030 plan.

Based in Duisburg, Germany, Xella operates across 21 European markets with more than 4,000 employees. The company is expected to generate approximately €1 billion in net sales by 2025 within the €12 billion-plus European walling market. Through this acquisition, Holcim aims to expand its Building Solutions business and enhance its offering of low-carbon, energy-efficient materials.

Holcim CEO Miljan Gutovic described the deal as “a milestone in our vision to be the leading partner for sustainable construction.” The transaction is projected to deliver strong financial returns, with a pro forma 2026 EBITDA multiple of 8.9x, or 6.9x after factoring in expected run-rate synergies of €60 million within three years. The company anticipates the acquisition will be accretive to both earnings per share and free cash flow in the first year, and to return on invested capital by the third year.

Xella’s well-known brands — including Ytong, Silka, Hebel, and Multipor — will join Holcim’s growing portfolio of eco-friendly building solutions. The acquisition also brings Xella’s digital construction platforms, blue.sprint and Building Companion, which will further support Holcim’s digital transformation and innovation goals.

Headquartered in Zug, Switzerland, Holcim reported net sales of CHF 16.2 billion in 2024 and employs over 48,000 people across 45 markets worldwide. The transaction remains subject to regulatory approvals and is expected to close in the second half of 2026.