Holcim to Spin Off North American Operations into New Entity, Amrize

Swiss building materials giant Holcim is set to spin off its North American operations into a standalone entity named Amrize, aiming to capitalize on the region's robust construction market. The spin-off is scheduled for completion by mid-2025, pending shareholder approval at Holcim's Annual General Meeting on May 14, 2025.

Amrize is projected to have a market valuation of approximately $30 billion, with 2024 revenues of $11.7 billion and an adjusted EBITDA of $3.2 billion. The company plans to list on both the New York Stock Exchange and the SIX Swiss Exchange, facilitating investment from both U.S. and European markets. Holcim's Chairman, Jan Jenisch, will transition to the role of CEO at Amrize post-spin-off. The operational headquarters will be established in Chicago, Illinois, with an investment of $18.6 million in capital expenditures and the creation of 50 new full-time jobs.

This strategic move aligns with Holcim's "NextGen Growth 2030" plan, which targets 6% to 10% annual growth in earnings before interest and taxes by 2030, driven by mergers and acquisitions. Following the spin-off, Holcim intends to focus on becoming a leading partner in sustainable construction, with no further spin-offs planned.

The U.S. construction market currently faces challenges such as high interest rates and inflation. The Portland Cement Association forecasts a decline in cement consumption, highlighting potential headwinds for Amrize. Despite these challenges, Amrize plans annual growth in adjusted EBITDA of 8-11% and sales growth of 5-8% from 2025 to 2028.

Environmental groups have urged Holcim to reduce its carbon emissions ahead of the spin-off. The Concrete Change campaign, led by U.S. non-profit Industrious Labs and supported by Swiss proxy adviser Actares, has called for the phasing out of energy-intensive kilns and the development of a net-zero cement plant in North America by 2030.

The spin-off is expected to position Amrize as a leading building solutions company in North America, focusing on infrastructure modernization, manufacturing reshoring, and addressing the housing gap. Holcim's strategic plan emphasizes sustainable construction and strategic acquisitions, with no further spin-offs planned.

Holcim's shareholders will vote on the spin-off at the upcoming Annual General Meeting, with the new company set to list on both the New York Stock Exchange and the SIX Swiss Exchange.