Press Release: SIKA COMPLETES ACQUISITION OF PAREX

Sika has completed the acquisition of Parex on May 23, 2019. The deal

was announced on January 8, 2019. With annual sales of CHF 1.2 billion,

Parex is a leading mortar manufacturer with an impressive track record

of profitable growth and attractive margins. Sika and Parex are two

strong companies that are highly complementary in product offering and

channel penetration. With this acquisition, Sika will expand its product

portfolio for the building finishing market, further strengthening its

world leader position in construction chemicals, and reaching sales in

excess of CHF 8 billion for 2019.

Parex' product offering includes facade mortars, tile adhesives, and

waterproofing mortars. With its expertise in mortar solutions for

renovation and new builds, Parex participates in all phases of the

construction life cycle. Parex has a particularly strong presence in

distribution channels, especially in China, where Parex has built up a

network of over 90,000 points of sale. With its strong, recognized

brands, Parex is known for its comprehensive R&D expertise and technical

excellence. The company is locally present in 23 countries, with key

positions in 8 core markets, and operates 74 plants around the world.

The acquisition of Parex will strengthen Sika's growth platform. Its

mortar business, which is a key growth technology for the group and one

of its important earning contributors, will more than double in size to

CHF 2.3 billion. Parex's strong position in distribution channels will

open up new business opportunities for Sika's product range. Parex will

gain access to Sika's well established direct sales channels, and

Parex's expertise in the facade and tile setting business will allow

Sika to participate in these growing and attractive market fields.

Paul Schuler, CEO of Sika: "With the acquisition we are bringing

together two strong companies. Parex' and Sika's joint business

activities present an excellent growth platform for both organizations.

In addition to the highly complementary fit with regard to product

offerings and channels, we also see that Parex and Sika have very

similar culture, values and management styles with the focus on

customer orientation, empowerment, high-quality products and services.

The integration planning is well on track, and on-site visits have

confirmed the attractiveness of the combination of the two businesses.

We are excited to start working together to build our joint successful

future. We warmly welcome all employees of Parex to the Sika Family."

Eric Bergé, CEO of Parex: "I am very proud of what we have

achieved. I want to thank the entire Parex team worldwide for their

outstanding work. The months spent together with Sika to prepare this

day showed how much these two great teams can bring to each other. We

can look to the future with confidence."

CONTACT

Dominik Slappnig

Corporate Communications &

Investor Relations

+41 58 436 68 21

slappnig.dominik@ch.sika.com

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SIKA CORPORATE PROFILE

Sika is a specialty chemicals company with a leading position in the

development and production of systems and products for bonding, sealing,

damping, reinforcing, and protecting in the building sector and motor

vehicle industry. Sika has subsidiaries in 101 countries around the

world and manufactures in over 200 factories. Its more than 20,000

employees generated annual sales of CHF 7.09 billion in 2018.

The media release can be downloaded from the following link:

-- Media Release

https://ml-eu.globenewswire.com/Resource/Download/987536c3-4cad-4e3f-b578-ed3750582869

(END) Dow Jones Newswires

May 23, 2019 12:00 ET (16:00 GMT)