Holcim confirms plan to spin off North American ops; names Gutovic as new CEO

Holcim (OTCPK:HCMLF) (OTCPK:HCMLY) confirmed Sunday it will spin off 100% of its North American business, which could be worth more than $30B, and said Miljan Gutovic, currently its head of European operations, will replace Jan Jenisch as its new CEO beginning May 1.

Holcim’s (OTCPK:HCMLF) (OTCPK:HCMLY) North America operations are among the largest suppliers of cement, commercial flat roofing materials and ready-mix concrete, and generated 35% of the parent’s total net sales of more than 29B Swiss francs (~$33.6B), a figure the company has said probably reached ~40% last year.

Holcim (OTCPK:HCMLF) (OTCPK:HCMLY), which plans to take the North American business public in the U.S. in next year’s H1, said the spinoff will “strengthen its ability to maximize value creation with its well balanced footprint and leading market positions across Europe, Latin America and Asia, Middle East and Africa.”

The company said it aims to increase annual sales of the North America business from ~$11B currently to more than $20B and generating operating profit of more than $5B by 2030.