RAK Ceramics signs agreement to acquire 100% of Kludi Group – News
The strategic acquisition of the Kludi Group represents an opportunity for RAK Ceramics to strengthen its existing growing core business in the German and European markets
Abdallah Massaad, Group CEO, RAK Ceramics, said this acquisition of Kludi Group aligns with our growth strategy and our commitment to strengthen our presence in key markets and focus on core products. — Photo provided
RAK Ceramics announced on Tuesday the signing of a share purchase agreement for the acquisition of 100% of the Kludi group, including 49% of Kludi RAK Joint Venture, for a total valuation of 39 million euros.
Kludi Group is an established leading German company that manufactures high quality kitchen and bathroom faucets and shower systems. Almost 100 years old, the company has a manufacturing footprint across Germany, Austria, Hungary and the United Arab Emirates, which incorporates cutting-edge and innovative German engineering technologies. The total turnover of the KLUDI group amounts to approximately 120 million euros, with sales in Europe, Asia and the Middle East.
In 2007, RAK Ceramics entered into a joint venture with Kludi Group, to create the “Kludi RAK” brand, for the production and sale of fittings in the Middle East. Over the years, this partnership has grown and proven to be successful and profitable, recording impressive growth and sustainable margins, strengthening the company’s base to withstand recent difficult market conditions.
The strategic acquisition of Kludi Group represents an opportunity for RAK Ceramics to strengthen its existing growing core business in the German and European markets; the brand is also expected to complement the RAK Ceramics product line and expand its offering to include faucets and faucets, further enhancing the Kludi brand’s exposure in RAK Ceramics’ key markets. The transaction is expected to realize operational manufacturing synergies, leveraging the presence of both companies’ factories in Europe, the United Arab Emirates and Asia.
Abdallah Massaad, Group CEO, RAK Ceramics, said this acquisition of Kludi Group aligns with our growth strategy and our commitment to strengthen our presence in key markets and focus on core products.
“This offers RAK Ceramics the opportunity to lead our expansion into European markets and improve our positioning in projects in the sanitary and fittings sector. The acquisition, based on a long-standing partnership and a shared vision, opens up new opportunities for the Kludi Group as we aim to further develop this historic and established European faucet brand by funding its strategy and advancing the modernization and brand digitization. It will also provide an opportunity for the Kludi Group to leverage the RAK Ceramics network to increase the value of the faucets,” he said.
Julian Henco, Group CEO of Kludi Group, said: “I am convinced that this transaction will be extremely beneficial for all parties involved, including customers and shareholders. The KLUDI Group is now a more robust, world-class faucet brand, well positioned to capitalize on RAK Ceramics’ extensive network to expand our product offering into markets that would not otherwise have been possible.
The transaction is conditional on regulatory approval, and both parties are working closely to complete the transaction which is expected to be implemented by May 31, 2022.