Holcim will acquire German wall systems maker Xella in a $2.16-billion-deal that could precede more “big deals” coming in the next few months, said Miljan Gutovic,the global cement maker's CEO.

Xella—a leader in sustainable and innovative wall systems to improve heat and sound insulation through its Ytong, Silka, Hebel and Multipor brands—projects $1.1 billion in sales this year, according to an Oct, 20 press release on the deal. The acquisition, expected to close in the second half of 2026, positions Holcim to tap into Europe’s growing refurbishment market, Gutovic told Reuters.

“Around 80% of the buildings that we live in today will still exist in 2050, which means we need to constantly invest to repair, to refurbish and keep them up to standard,” Gutovic said, adding that energy efficiency and noise reduction standards are “becoming more stringent” as cities grow. 

Holcim said Xella will add 4,000 employees to its headcount and works in 21 major European markets. “Xella will add to our customer offering in the highly attractive EUR 12 billion-plus walling market, with cross-selling and systems-selling opportunities,” said Gutovic.

Holcim said it will pay a multiple of 8.9 times Xella’s projected 2026 earnings before interest, tax, depreciation and amortization, marking the Swiss-based company's largest acquisition in more than four years as it steers business interests toward an increased focus on sustainable construction outlined in its 2030 growth strategy. "This strategic acquisition is a milestone in our vision to be the leading partner for sustainable construction," the company added.

“With Holcim’s global reach, Xella is well positioned to meet the evolving needs of the construction sector and support the transition to climate-resilient infrastructure,” the German company said in a statement.