Holcim, the Swiss building materials giant, has appointed Chairman and former CEO Jan Jenisch to lead its newly spun-off North American business. The move comes as Holcim prepares to separate its North American operations into a distinct U.S.-listed entity with a projected market capitalization of $30 billion.
Jenisch, who helmed Holcim as CEO from 2017 to 2024, has been instrumental in orchestrating the 100% separation of the North American business. This strategic decision aims to capitalize on the burgeoning infrastructure and construction sector in the region and unlock a higher valuation for the independent entity. The spin-off is slated for completion by the end of the first half of 2025.
In addition to Jenisch’s appointment, Holcim has named nine other members to the board of directors for the North American company. This newly formed board will provide governance and strategic direction for the independent business. The separation marks a significant shift in the global construction landscape and is being closely monitored by competitors, including Germany’s Heidelberg Materials.
Concurrent with these developments, Holcim has nominated current board member Kim Fausing to succeed Jenisch as chairman of the remaining business. Fausing, CEO of Danish engineering firm Danfoss, is expected to assume the role following Holcim’s annual general meeting in May, when Jenisch will step down.
Jenisch, who previously led Swiss construction chemicals company Sika, characterized the board appointments as a crucial milestone in the North American business’s journey toward becoming a standalone company. He emphasized the significance of this transition and the potential for growth in the North American market.
The North American business, which generated approximately $11 billion in sales in 2023, has demonstrated exceptional performance in recent years, boasting an average annual sales growth of 20%. This robust track record underscores the attractiveness of the North American market and the potential for continued expansion.
Looking ahead, Holcim aims to propel annual sales for the North American operation to $20 billion by 2030. This ambitious target will primarily be achieved through organic growth and strategic acquisitions. While a new name for the North American business is under consideration, the company’s commitment to expansion in this key market remains steadfast.
The strategic repositioning of Holcim’s North American business signals a bold move to capitalize on growth opportunities in the region. With Jenisch at the helm, the newly independent entity is poised to leverage its strong foundation and pursue ambitious expansion plans. This significant development promises to reshape the competitive dynamics of the global construction materials industry.
