Deal positions Holcim to tap into growing European refurbishment market
Global cement maker Holcim says it will acquire German wall systems maker Xella in a $2.16-billion-deal that CEO Miljan Gutovic said could precede more “big deals” coming “in the next few months.”
Xella—a leader in sustainable and innovative wall systems to improve heat and sound insulation through its Ytong, Silka, Hebel and Multipor brands—is projected to earn around $1.1 billion in sales this year, according to a October 20 press release announcing the deal. The acquisition, expected to close in the second half of 2026, positions Holcim to tap into Europe’s growing refurbishment market, Gutovic told Reuters.
“Around 80% of the buildings that we live in today will still exist in 2050, which means we need to constantly invest to repair, to refurbish and keep them up to standard,” Gutovic said, adding that energy efficiency and noise reduction standards are “becoming more stringent” as cities grow.
Holcim says Xella will add 4,000 employees to its headcount and is present in 21 of Europe’s most attractive markets.
“Xella will add to our customer offering in the highly attractive EUR 12 billion-plus walling market, with cross-selling and systems-selling opportunities,” said Gutovic in a press release.
According to Holcim, it will pay a multiple of 8.9 times Xella’s projected 2026 earnings before interest, tax, depreciation and amortization, marking the Swiss-based company’s largest acquisition in four-and-a-half years as it steers its business interests toward an increased focus on sustainable construction outlined in its NextGen Growth 2030 strategy.
«This strategic acquisition is a milestone in our vision to be the leading partner for sustainable construction, accelerating Holcim’s high-value Building Solutions in line with our NextGen Growth 2030 strategy,» the company added.
In a statement posted to its website, Xella said Holcim opens a new chapter as a company and is an “excellent fit” for the future.
“With Holcim’s global reach, Xella is well positioned to meet the evolving needs of the construction sector and support the transition to climate-resilient infrastructure,” the company said.
