GROHE Group all set to be acquired by LIXIL Corp

The GROHE Group, one of the world’s leading providers of sanitary fittings, has entered into an agreement with LIXIL Corporation and Development Bank of Japan in relation to the sale of an 87.5% equity interest in GROHE Group from TPG and DLJ Merchant Banking Partners. This transaction represents the largest ever German investment by a Japanese company. The combined sanitary businesses of both groups generate more than EUR 4 bn of annual revenue, making it the largest player in its industry.

GROHE remains independent and continues to implement its plan for long- term, sustainable and profitable growth. With the support of LIXIL, this will also include becoming a leading consolidator in the global sanitary industry, which is still characterized by a high degree of fragmentation.

David J Haines, Chief Executive Officer of GROHE, will remain in this position and has signed a new five-year contract. LIXIL and Development Bank of Japan will have seats on the Supervisory Board of the holding company of GROHE Group S.à.r.l. in Luxemburg.

“For GROHE and Joyou, LIXIL is a perfect match” said David Haines. “It is currently building a strong track record as a global leader in the building materials and housing equipment industry. As a growth-oriented company, LIXIL has always been the preferred partner to support us with our growth strategy, especially in emerging markets.”

For Joyou in particular, this new partnership will be of enormous benefit, as our ability to grow and strengthen the brand in the Asia-Pacific region will be enhanced.
“We are proud to have played our part in the remarkable transformation of GROHE over the last 10 years into a truly first-class global business”, said Stephen Peel, Managing Partner at TPG. “GROHE and its management will be a great combination with the LIXIL Corporation."

Colin Taylor, Managing Director and Partner at DLJ Merchant Banking Partners, added: “After almost 10 years of supporting GROHE and its terrific management team through an international expansion plan, we are delighted to see a continuation of the company's strategy to be the global market leader in the sanitary industry by joining forces with LIXIL Corporation."

“GROHE is one of the most well-known brands in the global sanitary market”, LIXIL President Yoshiaki Fujimori commented. “In addition to its high standards for quality, GROHE has received high acclaim globally for its leading product design and innovation. We have great respect for what CEO David Haines and his management team have achieved – bringing GROHE into the LIXIL family allows us to make further progress in building the leading platform in the global sanitary industry whilst also strengthening our distribution network in Asia.”