Materials
Global Cement Giant Holcim Plans $11B Spin-off of US Business
A Holcim cement plant in Midlothian, Texas. Holcim US has seen steady growth in sales this decade, one of the factors driving the planned IPO.
Photo by C.J. Schexnayder / ENR
In a move to take advantage of a robust North American construction market, Swiss-based cement manufacturer Holcim Ltd. has announced it will spin off its U.S.-based subsidiary, Holcim US—preparing it for an initial public offering on the New York Stock Exchange in the first half of 2025.
Chicago-based Holcim US, with more than 850 locations and more than 14,000 employees, is the largest U.S. cement producer. According to Holcim Group, the subsidiary booked an estimated $11 billion in sales in 2023. It will be the largest business shift for the company since its $44-billion merger with French-based materials firm Lafarge in 2015.
“The success of our North American business makes it the leading pure-play building solutions company in the region,” said Holcim CEO Jan Jenisch in a Jan. 28 press statement. “With a U.S. listing, we will unleash its full potential to be the partner of choice for our customers in one of the world’s most attractive construction markets.”
Holcim US's performance has outstripped many of the company’s other regions in recent years, with more than 20% in annual growth in its North American business since 2020. In a presentation to investors Jan. 28, Jenisch cited the strong U.S. construction market, specifically driven by recent federal spending initiatives that are beginning to translate into real projects.
Fueled by the 2021 Infrastructure Investment and Jobs Act as well as the 2022 Inflation Reduction Act, Holcim US could see over $20 billion in annual net sales by 2030, said its parent. In the presentation, the company said it has secured over 100 infrastructure projects in the U.S. for the 2023-2026 period.
“As we fully capitalize on the region’s infrastructure and construction boom, we will accelerate growth and unlock value for our stakeholders,” added Jenisch.
Holcim also announced Jan. 28 that Jenisch will step down as CEO in May, with Miljan Gutovic, head of its European operations and a member of Holcim Group’s executive committee, to take over. Jenisch will remain chairman, to focus much of his efforts going forward on preparing the Holcim US business spinoff, the company said in a press statement.
Holcim’s U.S.-based business is relatively diversified, with 2023 sales split roughly in thirds among its cement; aggregates and ready-mix; and solutions and products divisions. Roughly 54% of those sales related to new construction, with 46% in repair and refurbishment.
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