Swiss specialty chemicals company Sika announced this week that a definitive agreement was inked to acquire construction chemicals supplier MBCC Group from private equity firm Lone Star Funds for a consideration of CHF 5.5 billion (about $5.9 billion).

Formerly operated as BASF Construction Chemicals, MBCC Group is based in Germany and operates over 130 production plants across over 60 countries.

"Two sustainability champions will join forces. Sika is first in class for sustainable solutions across the entire construction industry, and similarly, sustainability stands at the core of MBCC Group’s business,” Sika CEO Thomas Hasler said in a company release. “Together we will reinforce our complementary range of products and services across the entire construction life cycle. With our combined portfolio, we will enable and accelerate the future of sustainable construction for the benefit of customers, employees, shareholders, and coming generations."

Sika states that the deal will increase its offerings of products and services in four of its five core technologies and seven out of eight of its target markets, including construction chemicals and industrial adhesives. The transaction would also expand its geographic footprint and advance its sustainability profile.

70% of Sika’s sales come from products that provide positive sustainability impacts, according to the company. As some 35% of MBCC Group’s products are “sustainably advanced,” the Swiss company believes the combination will allow it to generate about 80% of sales from products with positive sustainability effects.

“We have found a perfect partner who shares our core beliefs. Sika is well-known for its entrepreneurial spirit and its profitable growth strategy, including a strong acquisition track record. Our products and competencies will again be at the core of the business,” Jochen Fabritius, the CEO of MBCC Group, said in a statement. “Together with Sika, we are looking forward to exploring new and exciting business opportunities. I would like to thank Lone Star for the tremendous support during the past few years and for helping us to prepare for this next chapter.”