March 7, 2019 by David Kennedy
OAKVILLE, Ont.—Sika AG is making a major move into the Canadian concrete market.
The Switzerland-based chemical company and building materials supplier said March 7 that it has agreed to buy Oakville, Ont.’s King Packaged Materials Co. for an undisclosed price.
The family-owned Ontario firm is currently part of KPM Industries Ltd. and has a workforce of about 180. It manufactures a range of concrete and related building products, including dry shotcrete, grouts and masonry motors. With three production plants — one located in Brantford, Ont., another in Boisbriand, Que. in the Montreal suburbs and a final facility in Sudbury, Ont. — King serves mainly the construction and mining industries in the two provinces.
While Sika will acquire the concrete production assets of KPM, the company’s construction and fabricating divisions will remain under the KPM banner.
Sika said the deal will significantly expand its presence and growth potential in Canada.
“With the acquisition of King and its broad and highly complementary product offering we will further strengthen our presence in Canada and open up exciting new cross-selling opportunities,” Christoph Ganz, Sika’s regional manager for the Americas, said in a statement. He pointed to the home improvement, tunneling and mining segments as three key areas Sika expects to see see growth following the purchase.
While the financial terms of the deal were not disclosed, Sika said King posts annual revenues of about $81 million.
The acquisition is expected to close in the second quarter of this year.