Swiss building materials giant Holcim has announced plans to spin off its entire North American operations in a New York flotation, with expectations of valuing the business at around $30 billion. This strategic move, described as the biggest shake-up since the company’s acquisition of Lafarge in 2015, signals a significant shift in its operational focus and leadership structure.
Miljan Gutovic, currently heading Holcim’s operations in Europe, is set to take over as CEO from Jan Jenisch starting May 1. This leadership transition coincides with the ambitious divestment strategy aimed at unlocking the full potential of Holcim’s North American arm.
The spin-off, expected to be completed in the first half of 2025, will see Holcim listing 100% of its North American business on the New York Stock Exchange, with the parent company retaining no stake. Jenisch expressed confidence in securing shareholder support for the flotation, emphasizing the growth prospects of the U.S. business.
Holcim’s U.S. operations are poised for substantial expansion with plans to more than double annual sales to over $20 billion and generate operating profit exceeding $5 billion by 2030. Meanwhile, the company’s global footprint, spanning Europe, Latin America, Africa, and Asia, will continue to focus on building solutions like roofing products.
Jenisch, who will transition to the role of chairman, highlighted the attractiveness of the U.S. construction market and the potential for higher valuation multiples in the American stock market. By capitalizing on the infrastructure and construction boom in the region, Holcim aims to leverage its position as the leading cement maker in North America.
The U.S. segment, which accounts for a significant portion of Holcim’s sales and profitability, has consistently outperformed, with sales growth exceeding 20% in recent years. This success has prompted the decision to establish the North American operations as an independent entity to fully capitalize on its potential.
The remaining Holcim business, focusing on regions beyond North America, is expected to maintain its presence on the Swiss blue-chip SMI index. With sales of approximately 17 billion Swiss francs ($19.69 billion) and a workforce of 48,000 employees, Holcim remains committed to driving growth and innovation in the global building materials industry.
