German bathroom firm Grohe sold to Japan's Lixil

Grohe bath tap Grohe makes high-end bathroom and kitchen fittings

Luxury bathroom fittings maker Grohe has agreed to a takeover offer from Japanese building materials company Lixil.

Under the deal Lixil and the Development Bank of Japan have agreed to buy an 87.5% stake in the German firm, valuing it at $4.1bn (£2.5bn).

It is the largest takeover to date of a German firm by a Japanese company.

Grohe is owned by private equity firm TPG Capital and the private equity business of Credit Suisse.

The German firm employs about 9,000 staff worldwide and has nine factories, including plants in Portugal, Thailand, Canada and China.

It also owns a controlling stake in Chinese tap maker Joyou.

Grohe's British chief executive, David Haines, will remain in his post and has signed a five-year contract.

"For Grohe and Joyou, Lixil is a perfect match" said Mr Haines in a statement.

"As a growth-oriented company, Lixil has always been the preferred partner to support us with our growth strategy, especially in emerging markets."

Combined, Grohe and Lixil will become the world's biggest maker of bathroom and kitchen accessories.

International expansion

In its most recent earnings announcement Grohe said that sales in the first half of 2013 rose 5% to 730m euros ($987m; £614m).

Under the leadership of chief executive Yoshiaki Fukimori, Lixil has expanded its international operations.

In June, it spent $542m buying American Standard Brands, a US maker of bathroom and kitchen accessories.

It has also expanded in the engineering sector with the purchase of Italy's Permasteelisa in 2011.

More on This Story

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

BBC Business Live

  1.  
    SAINSBURY'S RESULTS 07:11:

    Sainsbury's is not expecting sales to pick up in the rest of the financial year. Chief executive Mike Coupe says "we now expect our like-for-like sales in the second half of they year to be similar to the first half".

     
  2.  
    TESCO PROBE 07:05: Breaking News

    The Financial Conduct Authority will conduct a "full investigation" into Tesco's £250m overstatement of profits, the supermarket said.

     
  3.  
    SAINSBURY'S RESULTS 07:00: Breaking News

    Sainsbury's has reported a 2.8% decline in like-for-like sales in the second quarter, excluding fuel. That's the third consecutive quarter of falling sales.

     
  4.  
    CO-OP BANK ETHICS 06:45: Radio 5 live

    Oh dear. The chair of Co-operative Bank's ethical board, Laura Carstensen appears on Wake Up to Money. She can't name a single country with an oppressive regime that the bank has declined to do business with. She also does not want to talk about the bank's private owners, but says all investors realise that the bank's ethical values are what makes it different. Co-op bank launches an advertising campaign today to publicise its ethics.

     
  5.  
    SAINSBURY'S RESULTS 06:34: BBC Radio 4
    Sainsbury's store

    Sainsbury's releases results at 07:00. Sales are expected to be down 4%, says Bryan Roberts, from Kantar Retail on the Today programme. "What it reflects is we are in a zero-growth market. The pie isn't getting any bigger. Aldi and Lidl aggressively expanded in the South East and London," he says.

     
  6.  
    PENSIONS 06:28: Radio 5 live

    "People are getting it," says Tim Jones the chief executive of National Employment Savings Trust (NEST) on Wake Up to Money. It's been two years since the government launched automatic enrolment for workplace pension schemes. Only 8% of people are opting out, but a quarter of those aged between 60 and 65 are not taking up the offer. "Older folks are thinking it's too late," says Mr Jones.

     
  7.  
    DOLLAR YEN 06:19: Radio 5 live
    yen

    The dollar has hit a six-year high against the yen, trading above 110 yen. On Wake Up to Money the BBC's Rico Hizon says that there are expectations that the Bank of Japan will further ease monetary policy. Currency traders are also looking ahead to Friday's US employment report, which should give an indication of the strength of the US economy.

     
  8.  
    MINIMUM WAGE 06:11: Radio 5 live

    Mike Cherry, National Policy Chairman for the Federation of Small Businesses says the raise in the minimum wage is still "realistic". But he wants a longer-term view of the wage. On Wake Up to Money he complains that business only gets six months notice of changes. He would like to the level to be set for a whole parliament.

     
  9.  
    MINIMUM WAGE 06:03: Radio 5 live
    Hand pennies

    From today the minimum wage rises 3% to £6.50. Conor D'Arcy, Policy Analyst at Resolution Foundation welcomes the move, until this raise the minimum wage was worth the same as it was in 2005, he says on Wake Up to Money.

     
  10.  
    06:01: Ben Morris Business Reporter

    Good morning. You can email us at bizlive@bbc.co.uk or tweet @bbcbusiness.

     
  11.  
    06:00: Howard Mustoe Business reporter

    Good morning everyone. This morning we are expecting an update from Sainsbury's on how trading has gone for them. The National Minimum Wage annual increase also takes effect, rising by 19p an hour to £6.50. Stay with us for more breaking news and analysis.

     

Features

From BBC Capital

Programmes

  • A computer simulation showing a planned station upgrade in Hong KongClick Watch

    Simulated world - how architects are using virtual and augmented reality to transform our cities

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.