SIKA COMPLETES ACQUISITION OF PAREX

Sika has completed the
acquisition of Parex on May 23, 2019. The deal was announced on January 8,
2019. With annual sales of CHF 1.2 billion, Parex is a leading mortar
manufacturer with an impressive track record of profitable growth and
attractive margins.

Sika and Parex are two strong
companies that are highly complementary in product offering and channel
penetration. With this acquisition, Sika will expand its product portfolio for
the building finishing market,
further strengthening its world leader
position in construction chemicals, and reaching sales in excess of CHF 8
billion for 2019.

Parex’ product offering includes facade mortars, tile adhesives,
and waterproofing mortars. With its expertise in mortar solutions for
renovation and new builds, Parex participates in all phases of the construction
life cycle. Parex has a particularly strong presence in distribution channels,
especially in China, where Parex has built up a network of over 90,000 points
of sale. With its strong, recognised brands, Parex is known for its
comprehensive R&D expertise and technical excellence. The company is
locally present in 23 countries, with key positions in 8 core markets, and
operates 74 plants around the world.

The acquisition of Parex will strengthen Sika’s growth
platform. Its mortar business, which is a key growth technology for the group
and one of its important earning contributors, will more

than double in size to CHF 2.3 billion. Parex’s strong
position in distribution channels will open up new business opportunities for
Sika’s product range. Parex will gain access to Sika’s well established direct
sales channels, and Parex’s expertise in the facade and tile setting business
will allow Sika to participate in these growing and attractive market fields.

More information from Nadine Slabbert, Tel: +27 31
7926500 /  Slabbert.nadine@za.sika.com