TOKYO--(BUSINESS WIRE)--LIXIL Corporation (Headquarters: Chiyoda-ku, Tokyo; President: Yoshiaki Fujimori), a global leader in the housing products and building materials industry, and GROHE Group S.à r.l. (Headquarters: Luxembourg; CEO and Chairman: David Haines), LIXIL-affiliate company, today announced that they had agreed to acquire, via a newly established joint venture, 51% of the shares of watertech and sanitaryware clusters of Distribution & Warehousing Network Limited (Headquarters: Johannesburg, South Africa; President: Derek Tod; hereinafter “DAWN”). The acquisition based on this agreement is expected to be completed in autumn 2014.
DAWN’s watertech and sanitaryware clusters have annual gross sales of about 110 million euros (about 15.4 billion JPY, 1 euro =140 JPY) attaining a growth rate of about 10% last fiscal year, and it holds a major share of South Africa’s watertech and sanitaryware market.
The joint venture agreement will make LIXIL one of the leading suppliers of sanitary fittings in South Africa. GROHE gains production facilities in South Africa and will further expand its distribution network and strengthen business activities in Africa.
Yoshiaki Fujimori, President and CEO of LIXIL, 43.75% owner of GROHE said "Expansion in emerging markets, especially Africa, is consistent with the strategy of LIXIL Group".
The LIXIL Group declared its goal of “becoming a comprehensive housing solutions provider targeting the global market” in its Medium-term Management Vision announced in May 2011, and it has been expanding its business to achieve growth and expansion on a global scale. This transaction opens the way for GROHE to successfully continue its long-term growth strategy with partner LIXIL at its side.
About Distribution & Warehousing Network Limited
DAWN is listed in Johannesburg Stock Exchange (JSE). The Group manufactures and distributes quality branded hardware, sanitaryware, plumbing, kitchen, engineering and civil products through a national, strategically positioned branch network in South Africa, as well as in selected countries in the rest of Africa and Mauritius. The brands acquired through the new agreement include COBRA, ISCA, VAAL, LIBRA and PLEXICOR. For more information, please visit: http://www.dawnltd.co.za/
About GROHE Group S.à r.l.
GROHE is one of the world’s leading providers of sanitary fittings operating over 130 countries. Under the global GROHE brand for sanitary products and systems, GROHE sets a high standard in quality, design, technology and responsibility, providing water to perfection. With the Joyou brand, the GROHE Group covers the fast growing Chinese market. Staffed by about 9,300 employees, it offers brands differing by price range and design: GROHE®, GROHE Professional®, GROHE SPA®, and Joyou®. Both companies became equity method affiliate companies of the LIXIL Group as a result of the January 2014 joint acquisition of 87.5% of GROHE’s shares by the LIXIL Group and the Development Bank of Japan.
For more information, please visit: http://www.grohe.com/
About LIXIL Corporation
Led by President and CEO Yoshiaki Fujimori, LIXIL Group Corporation (TSE Code: 5938) is a listed holding company posting 1.6 trillion JPY in consolidated sales in FY March 2014. The Group is involved in a broad spectrum of housing-related businesses, ranging from the manufacture and sales of building materials and housing equipment to the operation of home centers and a network of homebuilding franchises.
LIXIL Corporation, a consortium of building material companies, is a core enterprise of the Group, generating 80% of consolidated sales. The largest housing and building materials company in Japan with a vast and unique business portfolio, a 55% share in exteriors, 50% share in housing sashes and doors, 50% share in building sashes and shutters and 40% share in sanitary ware. LIXIL is also a leading brand such as in tiles, unit bathrooms and kitchen systems.
Launched in April 2011 under its present structure and name, LIXIL has been active in strategic acquisitions and partnerships in order to fortify and accelerate its growth globally. It currently operates in more than 30 countries through various brands offering a broad lineup of products and services. Permasteelisa, Gartner and Shanghai Meite, for example, spearhead our project business (building materials and curtain wall), while LIXIL, American Standard, Inax and Tostem brands provide an impressive product portfolio including kitchen units, bathroom fixtures, windows and doors.
For more information about LIXIL Group, please visit: http://www.lixil-group.co.jp/e/