Holcim to Spin Off North American Business

Holcim, a Switzerland-based concrete giant, has plans to spin off 100% of its North American operations in a New York flotation that could value the business at $30 billion, the building materials giant said.

This process will create the leading pure-play building solutions company in the region. The newly listed business will be committed to driving long-term growth in the rapidly expanding North American market and unlocking value for all its stakeholders. Holcim post US listing of North America is expected to remain included in the Swiss Market Index and the leader in innovative and sustainable building solutions.

Holcim’s Board of Directors also just appointed Miljan Gutovic as its chief executive officer, effective May 1, 2024. He will succeed current CEO Jan Jenisch, who will focus on his role as chairman and will stand for re-election at the AGM in May. He will also lead the planned US listing of Holcim’s North America business. 

“I am very pleased that the Board has appointed Miljan as the new CEO of Holcim," said Jenisch. "He is a highly qualified successor who has played an instrumental role in Holcim’s successful transformation to become the leader in innovative and sustainable building solutions. Miljan has strengthened our business with record profitability in Europe, closing strategic transactions and building winning teams. 

This is the biggest shake-up at Holcim since the Swiss company took over French rival Lafarge in 2015. The divestment is expected to completed in the first half of 2025.

The spin-off could value the new company at around $30 billion, Jenisch told reporters, with Holcim retaining no stake. "We're going to do a full capital market separation of our North American business, so we will list 100% of the business on the New York Stock Exchange," said Jenisch.

The US business aims to boost annual sales from around $11 billion at present to more than $20 billion and generate operating profit of more than $5 billion by 2030, the company said.