Holcim Chairman: 'Right Time' to Take Amrize Public

Ladies and gentlemen, buckle up! We're diving into the world of construction giants and the bold move by Holcim to spin off its North American business, Amrize. This isn't just a strategic play; it's a game-changer that could redefine the industry landscape. Let's break it down!



Why Now?

Holcim's CEO, Miljan Gutovic, has declared that the time is ripe for this spin-off. With record financial performance in 2024, including full-year net sales of CHF26.4 billion and recurring EBIT of CHF5.05 billion, Holcim is in a strong position to unlock new value for all stakeholders. The planned listing of Amrize on the NYSE and SIX Swiss Exchange by the end of the first half of 2025 is not just a financial move; it's a strategic masterstroke.

The Spin-Off Advantage

1. Unlocking Value: The spin-off will allow Holcim to focus on its core operations while Amrize can operate independently. This could lead to more efficient management and increased profitability. Think of it as splitting a powerful duo into two superheroes, each with their own unique strengths.

2. Targeted Acquisitions: Holcim has been actively involved in portfolio optimization through value-accretive mergers and acquisitions. With 27 transactions focused on the most attractive markets in 2024, including acquisitions in Bulgaria, Croatia, France, and Switzerland, Holcim is positioning itself for growth. The spin-off will provide the financial flexibility to pursue further acquisitions and expansions.

3. Sustainability Goals: Holcim is committed to becoming a net-zero company with 1.5°C targets validated by the Science Based Targets initiative (SBTi). By separating its North American business, Holcim can better allocate resources towards its sustainability initiatives, such as increasing the use of recycled construction demolition materials and developing innovative, low-carbon solutions.

4. Financial Flexibility: Holcim's strong financial performance positions the company well to pursue further acquisitions and expansions. The spin-off of Amrize will allow Holcim to leverage this financial strength to drive growth in other regions and business segments.

Market Impact

The planned listing of Amrize on the NYSE and SIX Swiss Exchange is expected to have a significant impact on Holcim's market valuation and investor perception. This strategic move will enhance transparency, provide access to a broader investor base, and align with Holcim's growth objectives.

Investor Perception

Holcim plans to host an Investor Day for Amrize on March 25, 2025, in New York City, and for Holcim on March 28, 2025, in Zurich. These events will allow investors to learn more about both companies' distinct strategies, capital structures, capital allocation priorities, and financial targets. This increased transparency can build investor confidence and attract new investors who may be interested in the specific opportunities presented by Amrize or the remaining Holcim operations.

Conclusion

The spin-off of Amrize is a bold move by Holcim that aligns with its overall growth strategy. It unlocks new value, enables targeted acquisitions and expansions, focuses on sustainability goals, and provides financial flexibility for future growth opportunities. This strategic move will enhance transparency, provide access to a broader investor base, and align with Holcim's growth objectives, ultimately contributing to a more accurate market valuation and improved investor confidence.

So, are you ready to ride the wave of Holcim's growth? This is a no-brainer! The time to invest in Holcim is NOW!