International private equity firm, Cinven, today announces that it has signed an agreement with Sika AG (SWX: SIKA) to acquire MBCC Group’s Admixtures business (‘MBCC Admixtures’ or ‘MBCC’).
MBCC Admixtures is a leading global manufacturer of concrete admixtures, as well as other sustainable solutions for the construction industry. The business provides value-added technology and chemistry expertise to improve the performance of construction materials and to enable the reduction of CO2 emissions in the production of concrete.
Headquartered in Mannheim, Germany, MBCC Admixtures has global operations, with more than 1,600 employees and 35 production sites across the UK, the USA, Canada, Europe, Australia, and New Zealand. The business operates under the “Master Builders” brand, and has market-leading R&D capabilities, with three international R&D centres and more than 170 professionals focused on product development and innovation.
Cinven’s acquisition of MBCC Admixtures builds on its significant expertise in the admixtures market through its successful investment in Chryso. Under Cinven’s ownership, Chryso grew to become a leading player in the admixtures market.
The transaction also underscores Cinven’s reputation as one of the leading investors in industrial carve-outs in Europe. Since 2020, Cinven has completed the carve-outs of TK Elevator from thyssenkrupp AG (2020), Arxada (formerly Lonza Specialty Ingredients) from Lonza Group AG (2021) and Envu (formerly Bayer Environmental Science) from Bayer AG (2022). Cinven is one of the leading investors in Germany and the wider DACH region. In addition to the aforementioned carve-outs, recent Cinven Funds’ investments headquartered in Germany include think-cell (2021) and dogado group (2023, combination with group.ONE), as well as Viridium Group (2019), STADA (2017) and Synlab (2015).
Cinven’s Industrials sector team and DACH regional team identified MBCC Admixtures as an attractive investment opportunity, given:
- The company’s leading market positions and longstanding history of innovation in the sector, underpinned by its high-quality product portfolio and extensive technical capabilities;
- The strong long-term growth outlook in admixtures, which has consistently grown faster than the broader construction sector driven by the critical nature of admixtures to enhance the properties and performance of concrete;
- The ESG benefits of admixtures due to their key role in reducing the carbon footprint of concrete production;
- The resilient features of the admixtures market, with higher exposure to infrastructure spending, which has historically proven to be more resilient through the economic cycle than the broader construction sector; and
- The multiple growth opportunities for the business on a standalone basis, including through further investment in R&D and innovation, focused on developing new products that enhance CO2 reduction in concrete and cement production, commercial excellence, and selective geographic expansion.
Pontus Pettersson, Partner at Cinven, commented:
“Cinven is delighted to make this investment in MBCC Admixtures, a business we have long admired and whose progress we have followed closely. MBCC brings together a number of attractive qualities – it is a global leader in its sector, has great potential for further growth and innovation, and plays a key role in helping cement and concrete producers to reduce carbon emissions. We are very much looking forward to helping the business to realise its full potential through a long-term growth strategy.”
Anthony Cardona, Partner at Cinven, added:
“We are confident that Cinven’s successful prior experience of investing in the admixtures sector and its strong track record in carve-outs from companies in the Industrials sector in Europe will allow us to create significant opportunities for MBCC Admixtures as an independent business. This investment endorses Cinven’s position as a leading partner for European industrial corporates looking to divest businesses to responsible, experienced and growth-oriented investors.”
Thomas Hasler, CEO of Sika, said:
“Cinven with its huge expertise in this sector is an ideal partner for continuing the successful growth path of this business which in turn will create significant opportunities for MBCC employees.”
Completion of the transaction is subject to regulatory approvals and is currently expected to complete in the first half of this year. Relevant employee representatives will be informed and consulted on this transaction according to the laws of involved countries.