Wedoany.com Report-Oct. 23, Swiss cement manufacturer Holcim announced an agreement to acquire Xella, a German specialist in building materials, walling, and insulation, for €1.85 billion. The deal, revealed on Wednesday, aims to enhance Holcim’s presence in Europe’s sustainable construction sector.

Xella, headquartered in Duisburg, Germany, with a research and development center in Berlin, employs approximately 4,000 people, including 200 sales staff. The company operates 50 production facilities across 21 European countries and is forecasted to achieve €1 billion in net sales in 2025. Xella offers four primary building block products and two digital construction platforms, strengthening its market position. The acquisition is valued at an 8.9x pro forma 2026 EBITDA multiple.

Holcim’s chief executive, Miljan Gutovic, emphasized the strategic importance of the acquisition: “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.” He added: “Xella will add to our customer offering in the highly attractive €12bn walling market, with cross-selling and systems-selling opportunities.”

The acquisition aligns with the growing demand for sustainable building solutions in Europe, where the market is projected to reach €250 billion annually, driven by needs for repairs and refurbishments. The European walling sector is also expanding due to increasing housing requirements, creating opportunities for innovative materials and systems.

Xella’s expertise in lightweight and energy-efficient building materials complements Holcim’s portfolio, enabling the company to offer integrated solutions that meet modern construction demands. The deal is expected to facilitate cross-selling opportunities, combining Holcim’s cement and concrete products with Xella’s walling and insulation offerings.

The transaction awaits regulatory approval and is anticipated to be finalized in the second half of 2026. Upon completion, it will position Holcim as a key player in Europe’s sustainable construction landscape, supporting the region’s shift toward eco-friendly and durable building practices.

This acquisition reflects Holcim’s commitment to advancing sustainable construction through strategic investments. By integrating Xella’s operations, Holcim aims to meet growing market needs while contributing to environmental goals, such as reducing carbon footprints in construction. The partnership is set to drive innovation, offering builders and developers advanced materials for energy-efficient projects.

The move also underscores the importance of collaboration in addressing Europe’s housing and infrastructure challenges. With Xella’s established network and Holcim’s global expertise, the acquisition is poised to deliver long-term value, fostering economic growth and sustainable development across the region.