Saint-Gobain Acquires Controlling Stake in Sika; Sika Management Threatens to Resign over Deal

Glass Magazine
December 9, 2014
COMMERCIAL, FABRICATION

Officials from Saint-Gobain announced it acquired a controlling interest in Sika for $2.8 billion. Saint-Gobain purchased the controlling share—16.1 percent of Sika’s capital and 52.4 percent of its voting rights— in a confidential auction process from the Burkard-Schenker family, which owns the majority stake in Sika, according to a Dec. 8 Reuters report.

“Given the proximity of Sika’s activities with those of Saint-Gobain (Construction Products and Innovative Materials as well as Building Distribution), the deal is expected to generate 100 million euros in synergies as from the second year (2017), and 180 million euros per year as from 2019. The deal will create value by the fourth year,” Saint-Gobain officials said in a statement.

The transaction is subject to clearance from the competent anti-trust authorities and is expected to be finalized in the second half of 2015 at the latest, according to Saint-Gobain officials.

The purchase was completed without the knowledge of Sika’s board and management, and Sika officials announced Dec. 8 that they will resign if the deal is finalized.

“The Board and Group Management of Sika AG have neither been involved nor consulted in connection with the proposed transaction,” Sika officials said in a statement. “The intended transaction would bring a fundamental change. Unlike the family, Saint-Gobain is an industrial investor and numerous conflicts to the detriment of the public shareholders could arise. The non-conflicted Board members and the Group Management each independently have come to the conclusion that if the transaction materializes they are no longer in a position to serve in the best interest of the company and all its stakeholders. They have therefore decided to resign following closing of the transaction.”