Zurich: Swiss building materials giant Holcim announced on Monday that it has agreed to acquire German walling systems manufacturer Xella in a €1.85 billion ($2.16 billion) deal. The acquisition is set to strengthen Holcim’s footprint in Europe and expand its portfolio of sustainable building materials.
Headquartered in Duisburg, Germany, Xella operates in 21 European markets and employs more than 4,000 people. The company markets its products under well-known brands such as Ytong, Silka, Hebel, and Multipor. Xella is projected to generate sales of approximately €1 billion in 2025. Holcim reported that it is paying a multiple of 8.9 times Xella’s projected 2026 EBITDA and expects the acquisition to be earnings accretive within the first year.
Holcim emphasized that the deal aligns with its strategy to grow in the sustainable construction sector, combining Xella’s expertise in walling systems with Holcim’s extensive resources to meet increasing demand for eco-friendly building solutions across Europe. The acquisition is expected to close in the second half of 2026, pending regulatory approvals.
Industry analysts view the deal as a strategic move for Holcim to consolidate its market position in the European walling segment, while also signaling the company’s continued focus on sustainability-driven growth through selective acquisitions.
The acquisition marks one of the largest European building materials deals of the year and highlights the ongoing consolidation trends within the industry as companies seek to expand capabilities and market reach in response to rising demand for sustainable construction products.