Sika AG Reports 13.7% Rise In FY Sales; To Acquire Parex – Quick Facts
Sika AG (SKFOF.PK) reported that its 2018 sales increased, in local currencies, by 13.7% to the equivalent of 7.09 billion Swiss francs. The company said above-average growth rates were achieved in Eastern Europe, Africa, the Middle East, USA, Indonesia, India, China, and in the Global Business segment. For the business year 2018, a record operating profit (EBIT) in the range of 940 million to 960 million francs is expected.
Separately, Sika announced it has made a binding offer to acquire Parex from its current owner CVC Fund V. Parex is a manufacturer of mortar solutions including facade mortars, tile adhesives, waterproofing, and technical mortars. The acquisition is value enhancing to Sika shareholders and is expected to be accretive to earnings per share from the first full year post closing. Annual synergies are expected to be in the range of 80 million – 100 million francs.
In 2019, Sika expects a sales increase in line with its Growth Strategy 2020 targets of 6 to 8% and an over-proportional rise in profits. Depending on the closing date of the Parex transaction, sales are expected to exceed 8 billion francs. The company said the execution of its growth strategy will continue in 2019 with the opening of new factories and further acquisitions.
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