With the closing of Parex, 38 brands were added to the Sika world, amongst them successful brands such as Davco, Revear, Klaukol, Parexlanko, and Seifert. The integration has started strongly and dual branding has already been introduced. All in all, more than 500 initiatives have been initiated and are being tracked. These initiatives ensure the full exploitation of the identified synergy potential of around CHF 100 million. The Parex integration has been both challenging and exciting, and the 23 countries involved in the process have shown that a systematic approach, follow-ups, and clear synergy targets have been key success factors of the integration, along with the commitment of the teams.
Over the last five years, Sika has acquired many additional companies. All of varying sizes, from different markets (roofing, building finishing, waterproofing, refurbishment), and different countries. All these acquisitions provide Sika with new expertise, new talents, and a wider footprint.
The integration of the acquired companies is a critical part. The culture, mindset, and history may vary from one to the other. Thankfully, with the dedication and the commitment of the Sika teams, along with the willingness of the acquired companies, integrations are successful and the great stories about King, KVK, or Adeplast in this newsletter are just some examples of many.
The next steps are clear: it is important to reinforce the “one company” spirit, ensuring that everyone can relate to the Sika story and work towards its future growth. The full and fast integration of the brands is key and triggers efficiency and growth. A smooth translation of all these brands with a clear brand positioning in our markets is important to further expand Sika’s customer base.
Angel Gonzalez Lucas, Head of Europe South
What are the key success factors for a successful integration?
Integration is the most critical process of the success of an acquisition and there are many factors influencing it. For example, the definition of a clear roadmap to define key activities (today, on day 1 and on day 100) or the establishment of the integration team and its role. The definition of processes and its integration are also important but from my point of view, the leading factor for a successful integration is the human factor. We have to define the new organization, integrate processes and culture, understand the business model, and define and implement the brand integration strategy. The key priority is to identify talents, motivate and protect them, and communicate the vision to reduce uncertainties.
What opportunities did the integration of Parex present for Sika?
A very different process was used for the integration of Parex. In this special case, due to the magnitude of the acquired company, we have established a more sophisticated and smart process based on the support of external consultants in the first phase and the establishment of the IMO team to support and guide the process. Now we have reached a higher level. We can approach an integration in a smarter manner, securing the value, focusing on key initiatives and processes of the company according to a clear timeline that requires a high level of discipline.
If I had to summarize, these are my final recommendations for a successful integration: measure value achievement more rigorously than feels necessary, go faster than feels comfortable, and communicate more than feels appropriate.