FRANKFURT (dpa-AFX) - Sika AG (SXYAY.PK, SKFOF.PK), a Swiss specialty chemical company, said on Tuesday that it has revised up its guidance for fiscal 2022.
In addition, it has also confirmed the proposed acquisition of MBCC Group, the former BASF Construction Chemicals, as strategic fit for the company.
For fiscal 2022, the chemicals firm now expects sales in local currencies to rise by over 15 percent, with an over-proportional increase in earnings before interest and tax or EBIT.
Earlier, Sika had projected its sales to increase by well over 10 percent in local currencies - surpassing CHF 10 billion for the first time with an over-proportional rise in EBIT.
For the fiscal 2021, the company posted EBIT of CHF 1.39 billion, on net sales of CHF 9.25 billion.
Regarding the proposed acquisition of MBCC, Sika said it has already received unconditional approval from the authorities in most jurisdictions, including Japan, China, Brazil, South Africa, Saudi Arabia, Turkey, and Thailand.
The acquisition is significantly value-enhancing and Sika has confirmed annual synergies of CHF 160 million to CHF 180 million.
The company has also launched a process to look for a competent buyer for part of MBCC's admixture business.
It was in November 2021 that Sika announced its deal to buy MBCC from an affiliate of Lone Star Funds, for CHF 5.5 billion or 5.2 billion euros.
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