Since May 2019, Parex is part of Sika. 24 country entities joined the Sika family and 23 of them are now fully integrated. Annual synergies of CHF 100 million have been identified, of which CHF 55 million are cost synergies and the revenue synergies are from 500+ cross-selling initiatives all over the world. In the full year 2020, total synergies of CHF 55 million where achieved and Sika is well on track to achieving its full synergy potential over the two coming years.
These results are solid proof of the fast and successfully completed integration. They are the results of a focused organizational setup, excellent integration teams on a local, regional and corporate level and 23 combined teams in the countries. In this edition of the Integration Newsletter we want to highlight the full system approach in our new Target Market Building Finishing, and how through this approach revenue synergies are achieved, the teamwork of the Global Procurement and Operations teams in this integration, and several Digital Marketing success stories from Parex as well as other acquisitions.
Parex Revenue Synergies – Full-System Approach to Serve our Customer Needs
With the integration of Parex, Sika has become a true system seller. Profiting from the strong expertise in tile setting materials and plasters, thermal insulation and decorative finishing for the wall and facade segment, Sika has now expanded and rounded out its previous product portfolio in many countries to offer the best system solutions to our customers.
Key Success Factors
The creation of the optimal product range is based on the collaboration of a diverse team of specialists from marketing & sales, technical department, R&D and operations. The local teams are supported by regional and corporate experts. The fast integration of our Parex colleagues into the organizational structure is a key element of success in order to analyze the product portfolios and define business plans, along with decision-making on brand integration, and thereby create and complete our product ranges, including the sharing of expertise – both internally and with our customers.
Complementary Products for Full-System Solutions
Sika’s system solution for tile installations in wet rooms is a perfect example of rolling out the joint expertise. Many Sika countries were able to complete their ranges with new and innovative products to offer the best solution to their customers. Many products have already been integrated into the Sika product portfolio or are sold as complementary products in Distribution or directly to the customer.
Qatar: From Basement to Roof
In Qatar, Sika has a strong presence in the substructure waterproofing business, whereas Parex was strong on the mortar side. The restructuring of the organization based on the Target Markets and a strong key account management enables to now offer customers the full product range from “Basement to Roof” – from waterproofing membranes to plasters and tile adhesives.
UK: A New Render Bead Adhesive
Profiting from the company’s joint sealant and adhesive know-how, Parex UK was able to launch a new render bead adhesive offering the applicators superior bonding technology to complete the portfolio of renders, coatings and ancillary products for render and facade systems.