Sika to acquire MBCC group for CHF 5.5 billion. The advisors

Sika has signed a definitive agreement to acquire MBCC Group, the former BASF Construction Chemicals, from an affiliate of Lone Star Funds, a global private equity firm, for a consideration of CHF 5.5 billion (EUR 5.2 billion). 

MBCC Group, headquartered in Mannheim, Germany, is active in the field of construction systems and admixture systems. With approximately 7,500 employees MBCC Group has operations in over 60 countries and more than 130 production facilities. 

The acquisition will complement and broaden Sika’s product and solution offerings in four of five core technologies and seven of eight Sika Target Markets and will further strengthen its geographic footprint. The combined business will be a key accelerator in enabling both Sika’s and MBCC Group’s customers and the construction industry to drive the sustainable transformation further and faster. 

The financing of the planned transaction is secured by a bridge loan facility. Sika intends to put in place a long-term funding structure comprising a combination of cash-on-hand, bank loans, and capital markets instruments. The acquisition is subject to regulatory approval. The closing of the acquisition is targeted for the second half of 2022. 

The advisors

Lenz & Staehelin is advising Sika in this transaction with respect to Swiss law. The team includes partners Tino Gaberthüel (corporate/m&a, pictured top) and Marcel Tranchet (finance) as well as Roland Fischer and Federico Henseler (both finance). 

An international team of Baker McKenzie lawyers advised Sika on the legal aspects of the transaction. The Baker McKenzie Switzerland team advising on the Swiss legal aspects of the transaction consisted of Peter Reinert (partner, employment, pictured left), Kevin Ardüser (associate, corporate), Daniel Kälin (associate, real estate), Alessandro Celli (partner, data protection) and Nadine Bosshard (associate, data protection). Further offices involved worldwide (among others): Frankfurt, Berlin, Munich, London, New York and Washington, D.C. 

Homburger acted as counsel to UBS, London Branch, UBS Switzerland and Citibank, London Branch as mandated lead arrangers in connection with the financing of the acquisition of MBCC Group by Sika. The Homburger team was led by partner Jürg Frick and included associates Stefan Bindschedler and Daniel Junginger (all financing and investment products) as well as partner Stefan Oesterhelt (tax).