202 1, 1 1,1released globally, sika acquired Mai Bo Shi Group, accelerated the growth strategy and strengthened the dominant position of sustainable development in the global construction industry.

Maiboshi Group is a world-renowned supplier of building chemicals, with annual sales of about 2.9 billion Swiss francs (2.7 billion euros).

The enterprise value of 5.5 billion Swiss francs corresponds to 1 1.5 times the expected profit before interest, tax, depreciation and amortization (ebitda) in 2022; If the expected annual collaborative contribution is1.6-1.80 billion Swiss francs, the multiple is 8.5 times;

This acquisition greatly supplements almost all the core technologies, applications and solutions of Sika;

Starting from the first full year after delivery, the acquisition will increase Sika's earnings per share; ?

The merged company will promote the sustainable development and transformation of the construction industry;

The acquisition must be approved by the regulatory authorities. We are confident that we will actively cooperate with the regulatory authorities and obtain the merger permission. The acquisition is scheduled to be completed in the second half of 2022.

Sika has signed a final agreement to acquire Maiboshi Group, a former BASF construction and chemical company, from a subsidiary of Lone Star Fund, a global private equity firm, at an estimated transaction consideration of 5.5 billion Swiss francs (5.2 billion euros). Maibosch Group is a leading global supplier of building chemicals. This acquisition will complement four of our five core technologies, expand products and solutions in seven of Sika's eight target markets, and further strengthen our geographical distribution. The combined business will provide faster help to customers of Sika and Maiboshi Group and the construction industry, and accelerate the sustainable transformation.

Headquartered in Mannheim, Germany, Maybosch Group is active in the field of building systems and additive systems. Maiboshi Group has about 7,500 employees, and its business covers more than 60 countries and more than 65,438+030 production plants. In 20021year, the company expects net sales of 2.9 billion Swiss francs (2.7 billion euros). Mai Bo Shi Group has a world-renowned product portfolio of international brands and local brands, and enjoys a high reputation in terms of quality and reliability. With its extensive and balanced product series, Maybosch Group has participated in all stages of the building life cycle and made important contributions to reducing carbon emissions in the construction industry.

Two sustainable head enterprises will join hands. Sika is an excellent enterprise that provides sustainable solutions for the whole construction industry. Similarly, sustainable development is the core business of Mai Bo Shi Group. We will jointly strengthen the supporting products and services in the whole building life cycle. By combining the product series of both parties, we will realize and accelerate the future of sustainable buildings, benefiting customers, employees, shareholders and future generations.

-SICA CEO Thomas Haessler.

We have found a perfect partner who shares our core beliefs. Sika is famous for its entrepreneurial spirit and profit growth strategy, including a strong acquisition record. Our products and capabilities will once again become the core of our business. We look forward to exploring exciting new business opportunities with Sika. I want to thank the Lone Star Fund for its strong support in the past few years, which has helped us enter a new stage.

-Jochen Fabritius, CEO of Mai Bo Shi Group

This acquisition will accelerate Sika's growth strategy in 2023. Sika will expand our products and services in the field of building chemicals and industrial adhesives by absorbing the highly complementary product series of Mai Bo Shi Group. We set the sales target for 2023 as more than 654.38+0.3 billion Swiss francs. The merger will help balance the business scale and product portfolio of Sika's target market, and the combined target market will have sales of 65.438+0-2 billion Swiss francs respectively. The distribution network in the construction market will be improved and strengthened, thus benefiting customers. Sustainable development is still the core strategy of the two companies, so this time, two highly active and super-hard global teams will work together to promote a strong sustainable development future.

Today, 70% of Sika's sales come from products that have a positive impact on sustainable development, while more than 35% of Mai Bo Shi Group's products have sustainable advantages. Through the merger, 80% of Sika's products will make positive contributions to sustainable development.

Financial parameters

The complementary operation and production layout of Sika and Mai Bo Shi Group is expected to bring attractive integration opportunities, including revenue and cost synergy. It is predicted that by 2025, the annual synergistic effect will reach10.60 billion-10.80 billion Swiss francs. 1 1.5 times the purchase price corresponding to the estimated profit before interest, tax, depreciation and amortization in 2022, if the synergy effect in operation is considered, it will be reduced to 8.5 times. This acquisition will enhance the value of Sika shareholders. It is expected that Sika's earnings per share will increase substantially from the first full year after the acquisition.

The financing of this acquisition transaction is expected to be guaranteed by bridge loan institutions. Sika is still committed to maintaining a strong investment-grade credit rating and plans to establish a long-term financing structure, including a combination of cash, bank loans and capital market instruments.

The acquisition must be approved by the regulatory authorities. We are confident that by actively cooperating with the regulatory authorities, we can obtain the merger permission. The acquisition is scheduled to be completed in the second half of 2022.

About Dr. McPherson

MBCC Group is a leading global supplier of building chemicals and solutions, providing innovative and sustainable products and solutions for many areas of the construction industry, such as architecture, structure, underground engineering, new construction and renovation projects.

The main brands of MBCC Group include: Master Architect Solutions, PCI, Thermotek, Wolman, Colorbiotics and Watson Bowman Acme.

These brands have established a good reputation in the market and accumulated more than 100 years of industry experience and technology. MBCC Group consists of about 70 legal entities around the world and more than 7,500 construction experts from more than 60 countries.

About Mai Bo being China.

MB Solutions China is responsible for managing four legal entities of Maiboshi Group in China: Maiboshi Chemical Building Materials (China) Co., Ltd., Maiboshi Building Materials System (Huzhou) Co., Ltd., BASF Hauck Mining Chemistry (China) Co., Ltd. and Shanghai Meister Building High-tech Building Chemical Co., Ltd., with the brand of Master Builders Solutions. With 100 years of industry experience and technical accumulation, the product portfolio covers concrete admixture system, functional floor system, waterproof and sealing system, concrete repair and protection system, grouting system and wall system. It aims to provide materials and more advanced solutions for building construction, underground engineering, ground, maintenance, repair and renovation projects, and create sustainable performance.

Source: Sika China