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Sika Acquires Technology Leader in Liquid Membranes

Words: Jessika GormanSika AG acquired Iotech Group Limited, with headquarters in England and subsidiaries in the UK, USA and Belgium. The transaction closed on January 26, 2009.

Iotech Group revenues totaled $55 million for the year 2008. Previously the company was privately owned. Iotech specializes in formulation, production and supply of polyurethane liquid membranes and intermediates.

Liquid membranes are well established in the global roofing and waterproofing markets. The membranes are supplied mainly to the highly profitable and crisis-resistant refurbishment market for small to mediumsized roofs. The global liquid membrane market is fragmented, and is served only by regional or local suppliers. Market growth is disproportionately high, outperforming the construction market as a whole. With this acquisition Sika substantially expands its technology and market know-how and builds up a market position in polyurethane liquid membranes for roofing. In addition to liquid membranes, Iotech formulates produces and supplies hygienic wall coatings. This product range contributes to Sika’s market approach in clean room applications, e.g. for the food industry.

Iotech’s highly recognized R&D organization enables Sika to establish a technology center for liquid membranes. Sika anticipates that liquid membrane technology will advance materially and has considerable global market potential.

In the USA, Iotech’s Liquid Plastics Inc. has a strong market position in liquid membranes for roofing and waterproofing applications. This fits well with Sika’s construction business activities in roofing, joint sealing, concrete repair, and protection. Liquid Plastics manufactures in a state-of-the art production facility in Middletown, CT. Because of these strong synergies, Sika will integrate Liquid Plastics into its Construction Products Division to further strengthen its market position, and extend the reach of these innovative technologies throughout North America.

The parties have agreed not to disclose the sales price. Approximately 250 employees are expected to join Sika.
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