By Bernie Cahiles-Magkilat
Two mortar manufacturing companies Swiss firm Sika and French Parex Davco have joined forces to capture a bigger share of the growing Philippine market for finished building materials.
Sika Philippines Inc. and Parex Philippines have converged following the Sika’s successful global acquisition of the Parex Group on May 23, 2019.
Paul Schuler, CEO of Sika said the acquisition would translate to excellent growth for both companies.
Sika and Parex are two strong companies that are highly complementary in product offering and channel penetration.
Both companies have local manufacturing operations, Parex in Taguig and Sika in Muntinlupa, where 90-95 percent of products for local distribution are produced in these plants.
With annual global sales of $1.152 billion, Parex is a leading mortar manufacturer with an impressive track record of profitable growth and attractive margins.
With the acquisition, Sika will expand its product portfolio for the building finishing market, further strengthening its world leader position in construction chemicals, and reaching worldwide sales in excess of $7.680 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. With its strong, recognized brands, Parex is known for its comprehensive R&D expertise and technical excellence.
“With the acquisition we are bringing together two strong companies. Parex’s and Sika’s joint business activities present an excellent growth platform for both organizations. In addition to the highly complementary fit with regard to product offerings and channels, we also see that Parex and Sika have very similar culture, values and management styles - with the focus on customer orientation, empowerment, high‐quality products and services,” Schuler said.
He added that the integration planning is well on track, and on‐site visits have confirmed the attractiveness of the combination of the two businesses.
“We are excited to start working together to build our joint successful future. We warmly welcome all employees of Parex to the Sika Family,” he added.
For the Philippines in particular, the acquisition of Parex will strengthen Sika’s growth platform in the country.
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 presence in projects, and Parex’s expertise in building finishing i.e., façade, skim coat, tile setting mortar solutions, etc. will allow Sika to expand in these growing and attractive market fields.
Laurent Bouet, Sika Philippines General Manager for his part said: “Parex and Sika share common values and a similar culture of trust and performance. In our new chapter, we will work together to integrate the two companies and continue to build trust.”
Bouet said building trust would be the motto of the two companies’ integration and together, they would be creating additional value for customers, accelerate growth and capture synergies.
“While this integration will require hard work and continuous efforts, we are confident that we will complete this successfully; making Sika the undisputed leader in the industry, and a company that everyone can be proud to work for,” Bouet said.