By Liz White, ERJ staff
Baar, Switzerland-Sika AG and Sarna Kunststoff Holding AG are planning to combine their waterproofing membranes businesses.
Sika has offered Sarna shareholders SwFr 175 (Euro 113) per share and Sarna's board is recommending that the offer is accepted.
Meanwhile, Sika said, it fully supports the ongoing sale of the Sarna Automotive Division.
In combination with Sarna, "Sika will also become the global market leader in system solutions for waterproofing roofs," said Dr Walter GrÃ¼ebler, Sika's chairman.
The new entity will be able to consolidate the strong market positions in Europe built up by both companies. Overseas, Sarna will benefit from Sika's well established local market presence. In North America and China, Sika can leverage on Sarna's presence and its production facilities in the membrane sector.
Sarna and Sika's products and marketing strategies in the waterproofing business "complement each other very well," said a Sika statement. Sarnafil-Sarna's membrane products-are strong in renovation, which Sika describes as a high-value, but advice-intensive sector: Sika's Sikaplan products sell mainly into high-volume markets, said Sika.
Sika said that both partners will benefit from being able to optimise use of their manufacturing capacities, without going into further detail.
Both companies' waterproofing membranes for construction are based largely on thermoplastics-mainly polyvinyl chloride sheeting, although Sika supplies some Hypalon sheeting-DuPont's chlorosulphonated polyethylene elastomer.