ZURICH, Oct 20, 2025 (BSS/AFP) - Swiss cement company Holcim said Monday it is to buy German building and insulation firm Xella for 1.85 billion euros ($2.2 billion).

Holcim said it has signed a binding takeover agreement with Xella, and figured on 60 million euros' worth of synergies three years after completing the acquisition.

Holcim, among the top cement producers in the world, has been diversifying into roofing and cladding products through acquisitions.

Xella, which markets walling systems across much of Europe, should show turnover of around one billion euros this year, and has a workforce of 4,000, Holcim said in a statement.

Holcim CEO Miljan Gutovic called the transaction a "strategic acquisition" which would expand "cross-selling and systems-selling opportunities" to customers.

Holcim had net sales of $20 billion (17.5 billion) last year, and employs more than 48,000 people across Europe, Latin America, Asia, the Middle East and Africa.