Global cement maker Holcim says it will acquire German wall systems maker Xella in a $2.16 billion deal that CEO Miljan Gutovic said could precede more “big deals” coming “in the coming months.”
Xella, a leader in sustainable and innovative wall systems to improve thermal and acoustic insulation through its Ytong, Silka, Hebel and Multipor brands, is expected to earn about $1.1 billion in sales this year, according to an Oct. 20 press release announcing the deal. The acquisition, which is expected to close in the second half of 2026, positions Holcim to take advantage of Europe’s growing renewal market, Gutovic told Reuters.
“About 80% of the buildings we live in today will still be around in 2050, which means we will have to constantly invest to repair, refurbish and keep them up to standard,” Gutovic said, adding that energy efficiency and noise reduction standards are “getting stricter” as cities grow.
Holcim says Xella will add 4,000 employees to its workforce and is present in 21 of Europe’s most attractive markets.
“Xella will add to our customer offering in the attractive €12 billion+ wall market, with system and cross-selling opportunities,” Gutovic said in a press release.
According to Holcim, it will pay a multiple of 8.9 times Xella’s projected 2026 earnings before interest, taxes, depreciation and amortization, making it the Swiss-based company’s biggest acquisition in four and a half years as it steers its business interests toward an increased focus on sustainable construction outlined in its NextGen Growth strategy.
This strategic acquisition is a milestone in our vision to be the leading partner for sustainable construction, accelerating Holcim’s high-value construction solutions in line with our NextGen Growth 2030 strategy.
In a statement posted on its website, Xella said Holcim opens a new chapter in its history as a company and is “an excellent fit” for the company’s future.
“With Holcim’s global reach, Xella is well positioned to meet the evolving needs of the construction industry and support the transition to climate-resilient infrastructure,” the company said.
