05/25/2020
One year after closing
Dear Friends
It has now been one year since we officially closed the Parex acquisition on May 23, 2019.
Since then we have seen great work across all companies, ranks, and Target Markets. Teamwork has been demonstrated in an unprecedented manner and everybody is working towards the same goal - to be one successful company and to achieve outstanding results.
More than 500 initiatives are being tracked. These initiatives ensure the full exploitation of the synergy potential, with forecast synergies of CHF 80-100 million in the upper range of the bandwidth. In procurement alone, our secured savings have already reached CHF 14 million.
At closing, 38 brands were added to the Sika portfolio, amongst them successful brands such as Davco, Revear, Klaukol, Parexlanko, and Seifert. The integration work has started strongly and the dual branding has already been introduced. We are seeing new initiatives everywhere: 34 new products launched in more than 10 countries, 48% of the total synergy initiatives are in cross-selling, and more than 35 initiatives for operational synergies have been started.
Congratulations to the countries for the excellent progress made to date. Despite the ongoing pandemic, your work has been even faster and more focused. Everyone has demonstrated great teamwork and a strong determination to overcome the numerous challenges. This commitment will ensure our common future success. Let’s welcome all Parex employees to our Sika family!
Paul Schuler
CEO
Key Achievements Year One
"We are celebrating the first anniversary of the Parex acquisition and we can look back on 12 months of tremendous work by many teams and individuals. However, whilst we can be proud of our achievements, there is still much work to be done and many opportunities to be captured. Thanks to the many initiatives, we are seeing that the combined companies are even stronger together and our distribution presence has been reinforced. We now need to continue on this path to becoming the undisputed market leader in Building Finishing." Philippe Jost, Head Construction
China - Successful Cross-selling Strategy
Since the acquisition, a strong cross-selling set-up was put in place. This is not only providing additional growth, but is also the basis for a good recovery after the pandemic and continuation of the expansion strategy.
- Generated sales with Sika products in over 70% of existing 3,200 exclusive Davco shops and in over 23,300 Davco points of sale
- Development of a new retail model for Sika products, with already 10 exclusive Sika shops opened across China
- This approach was started in retail business with a focus on Sealing & Bonding category and will be expanded to other categories during 2020
- Cross-selling synergies were not only created in the retail channel, but also through our growing e-commerce platform
- Already 10 new Sika products have been launched since the closing
Distribution Network Increase: +10% more Distributors in 2020
Stories
Successful Integration ongoing in all 23 countries - many new opportunities have been identified to grow our business.
