In a move to take advantage of a strong U.S. construction market, Switzerland-based cement maker Holcim Group has announced it will spin off its U.S. subsidiary, Holcim US, preparing for an initial public offering in the New York Stock Exchange. sometime in the first half of 2025.
With more than 850 locations and more than 14,000 employees, Holcim US is the largest cement producer in the United States. According to Holcim, its US-based subsidiary reported sales estimated at $11 billion by 2023. It will be the biggest business change for the company since its $44 billion merger with Lafarge, based in France in 2015.
“The success of our North American business makes it the leading pure construction solutions company in the region,” Holcim CEO Jan Jenisch said in a Jan. 28 press release. “By listing in the United States, we will unleash its full potential to be our customers’ preferred partner in one of the world’s most attractive construction markets.”
Holcim US has outperformed many of the company’s other regions in recent years, with annual growth of more than 20% in its North American business since 2020. In a presentation to investors on 28 In January, Jenisch cited the strong U.S. construction market, specifically boosted by recent federal spending initiatives that are starting to translate into real projects.
Bolstered by the Jobs and Infrastructure Investments Act of 2021, as well as the Inflation Reduction Act of 2022, Holcim projects that its US unit could see more than $20 billion in annual net sales by 2030. In the presentation, the company said it has secured more than 100 infrastructure projects in the United States for the period 2023-2026.
“As we fully capitalize on the region’s infrastructure and construction boom, we will accelerate growth and unlock value for our stakeholders,” Jenisch added.
Holcim also announced on January 28 that Jenisch will step down as CEO in May, making way for Holcim Group Executive Committee member Miljan Gutovic to take over. Jenisch will remain chairman and will focus much of his efforts going forward on preparing the spin-off of the Holcim business in the US, the company said in a press release.
U.S.-based Holcim’s business is relatively diversified, with sales of $11 billion in 2023 split roughly in thirds between its cement; aggregates and preparations; and product and solution divisions. Approximately 54% of these sales were related to new construction, with 46% in repairs and renovations.
