Coatings World - July 2009

09

Sika AG Baar, Switzerland www.sika.com

PUBLIC COMPANY
HEADCOUNT: 12,900
YEAR ESTABLISHED: 1910
ADHESIVES/SEALANTS/COATINGS REVENUES:
$2.356 billion
TOTAL REVENUES: $4.284 billion

SEGMENT BREAKDOWN

• Construction Segment: 80%

• Industry Segment: 20%

KEY PEOPLE

Walter Grüebler, chairman of the board; Ernst Bärtschi, CEO; Construction segment: Alexander Bleibler, contractors; Christoph Ganz, distribution; Ernesto Schümperli, concrete; Industry segment: Bruno Fritsche, industry.

Sika’s product line includes concrete admix- tures,sealants,adhesives,corrosioninhibitors, specialty mortars, epoxy resins, structural strengthening systems, grouts, anchoring adhesives, overlays, and protective coatings. The sale of adhesives, sealants and coatings amounted to approximately $2.356 billion in 2008. These products are spread out across the construction segment, which is reponsbile for about 60% of revenue, and the industry segment, which makes up the remaining 20%.

It was an active year for Sika in terms of acquisitions. In January 2008 Sika purchased the business of the German Tricosal GmbH & Co. KG in Illertissen. Tricosal is one of the leading enterprises in the area of sealing and waterproofing of buildings and civil engineering structures in Germany. The production and distribution activities of Tricosal BBZ AG in Hauptwil in Switzerland were also acquired.

With this purchase Sika expanded its product palette and know-how for the sealing of structures, and with Tricosal’s area-wide distribution encompassing four branch offices as well as on-site services, has strengthened its project business in the German market. Along with sealing and waterproofing activities, Sika also took over the product area plaster.

Sika Corporation, the U.S. subsidiary of Sika AG, acquired the commercial and industrial polymer flooring business of The Valspar Corporation. The transaction closed on January 9, 2008 and revenues for this business totaled approximately $17 million in 2007.

Already a market leader in construction chemicals including adhesives and sealants, concrete admixtures,

Ltd., located in Onta repair and strengthening products, Sika expects that this acquisition will further strengthen its North American position in the polymer flooring market.

Valspar’s polymer flooring business, with its strong portfolio of epoxy and polyurethane technology products, is an excellent fit for Sika’s focused growth strategy for North America. With an established, well-respected range of products, people, applicators and distributors, the Valspar polymer flooring business greatly enhances and complements Sika’s current position in this key market.

The acquisition also creates for Sika the most comprehensive range of epoxy, polyurethane and other key polymer flooring products and technologies in the industry.

Three months later Sika added another respected player to its portfolio in the business field of industrial flooring in the USA: the IC S Garland, Inc. business for polymer-based commercial and industrial flooring. This business also comprises products based on epoxy and polyurethane.

Sika also purchased Cappar rio, Canada. On one hand Sika expanded its presence in Canada in the areas of polymer flooring, sealing and waterproofing, and coatings.

In terms of infrastructure investment, during 2008 Sika commenced operation of its new roughly $40 million technology center in Zurich. Also in Switzerland, Sika brought a new 40,000 square meter factory for Sikaflex polyurethane adhesives. More than roughly $100 million was invested in this major project in Düdingen in Canton Fribourg. From Düdingen the entire European market will be supplied with polyurethane adhesives. ;