Swiss building materials giant Holcim Ltd. Is accelerating its transformation from a traditional cement business, acquiring Germany's Xella Group for 1.85 billion Swiss francs ( $2.2 billion). This is Holcim's largest acquisition since the acquisition of Firestone Building Products in 2021. The acquisition further solidifies Holcim's expansion into construction solutions, following the company's spin-off of its North American business unit.
Holcim CEO Miljan Gutovic said the acquisition is in line with the company's strategy to focus on high-margin, sustainable products, as the market demand for energy-saving building materials is growing. Xella's well-known brands Ytong, Silka, Hebel and Multipor will help Holcim enter the 12 billion euro wall material market in Europe, which is expected to reach 16 billion euros by the end of the 2020s.
The acquisition puts Holcim in a stronger position to recover in the European real estate market, particularly in Germany, where a recovery in the residential market is expected. Holcim will also use this to enter the Danish, Norwegian and Swedish markets, with opportunities to cross-sell in areas such as adhesives, plastering and waterproofing solutions. Shares of Holcim rose as much as 2.5% in Zurich after the acquisition was announced and are up about 52% so far this year. Holcim expects the deal to close in the second half of 2026, subject to regulatory approvals and value creation for the company from year one.
Gutovic, who has overseen 10 small acquisitions in 2025, said Holcim plans to do 15 to 20 more deals this year, with the goal of expanding into new opportunities in Latin America. The company has set aside between SFr4bn and SFr6bn for strategic M & A and share buybacks until 2030, demonstrating Holcim's continued strong interest in both small acquisitions and large deals. The Xella acquisition, which is expected to add about 4,000 employees to Holcim's estimated sales of CHF 1 billion in 2025, will help Holcim transform from a cement producer into a diversified construction solutions giant.