Villeroy & Boch, a German company specializing in ceramics and lifestyle products, has signed binding agreements to acquire all operating companies in the Ideal Standard Group, a manufacturer of sanitaryware and fittings products in Europe, the Middle East and North Africa.
Corporations managed by Anchorage Capital Group and CVC Credit are selling Ideal Standard shares, with the acquisition price determined by a company valuation of around €600 million.
As a result of the deal, Villeroy & Boch anticipates doubling the revenue of its Bathroom & Wellness Division, reaching €1.4 billion. Including the Dining & Lifestyle division, this represents an increase for the company as a whole to over €1.7 billion.
“This merger means that we will now catch up with the largest players on the European market in the bathroom sector in terms of turnover,” explains Frank Göring, CEO of Villeroy & Boch. “Our complementary strengths also make us more competitive and significantly improve our starting position for achieving additional growth.”
The two companies are a strategic fit given their regional presence, sales strategies and product and brand portfolios. While Villeroy & Boch’s sales strategy focuses primarily on a high-end private customer base, Ideal Standard focuses on the project business, including the public sector, the healthcare industry and developers of large residential, hotel and commercial properties. Alongside its range of ceramic bathroom ware and other products, Ideal Standard brings an established fittings business that generated over a third of its revenue in the past financial year.
“Villeroy & Boch and Ideal Standard complement each other in terms of products but also in terms of brands, and will gain mutual benefit from their different sales channels. Both companies will play a key role in charting the future course of the industry,” said Jan Peter Tewes, Ideal Standard CEO.
Expected to be completed in early 2024, Villeroy & Boch is financing the deal with its own liquid capital and a €250 million loan.