Baar, Switzerland – Sika AG is acquiring Crevo-Hengxin, a Chinese manufacturer of silicone sealants and adhesives used in both industry and construction applications.
Based in Changshu, eastern China, the business achieves average annual sales of CHF50m (€45m), said Sika in a statement 9 Sept.
With the acquisition, the Swiss chemicals firm expects to broaden its target markets in the construction and industrial sectors and grow its sealing & bonding presence in China and Asia Pacific.
With 140 employees, Crevo-Hengxin is a family-owned manufacturer of a broad range of silicone products used for facades, fenestration, insulated glass, interior finishing and other sealing and bonding applications.
The deal includes a production facility, an R&D centre, a warehouse, and offices.
"The outlook for the silicone sealants and adhesive market – and indeed for our business in China – is promising,” said Mike Campion, regional manager Asia/Pacific, Sika.
With the acquisition of Crevo-Hengxin, he went on to say, “we will increase our know-how in this key technology, and expand our local production capabilities.”
The company, said Campion, intends to “immediately leverage the business potential of the new product lines by exploiting the cross-selling synergies offered by Sika’s extended distribution channels."