A joint venture between GROHE Group of Luxembourg and LIXIL Corporation of Japan has acquired 51% of the shares of new company GROHE DAWN Watertech Holdings Pty Ltd. The remaining 49% will continue to be owned by DAWN of South Africa.
The acquisition consideration is around €62 million. The company comprises the sanitary fittings and sanitaryware brands of DAWN. From the acquisition, GROHE will gain new production facilities and an established distribution network in South Africa. This will give GROHE the opportunity to systematically step up its business activities on the African continent. The transaction also makes LIXIL one of the leading suppliers of sanitary fittings in South Africa.
According to David J. Haines, chief executive officer and chairman of the Supervisory Board of the GROHE Group S.à r.l. and a member of LIXIL Corporation’s central Board of Directors, the joint transaction by LIXIL and GROHE is a “perfect fit” with the company’s strategy of improving its brands positioning worldwide.
“This acquisition will enable the GROHE Group in conjunction with its partner LIXIL to continue to grow sustainably and further expand its GROHE and JOYOU brands,” he said.