RAK Ceramics signs MoU with LATICRETE International to sell interest in RAK LATICRETE Inc.
Dubai, UAE, January 18, 2015
5World’s largest ceramics manufacturer streamlines its business interests.
RAK Ceramics signs MoU with Laticrete International to sell interest in RAK Laticrete Inc.
Formed in 2004, RAK LATICRETE is a joint venture between RAK Ceramics and LATICRETE International Inc. Together, the companies manufacture tile installation systems and waterproofing products for distribution throughout the Middle East and Africa.
In early 2014, RAK Ceramics announced plans to streamline operations and focus on ceramics production.
“The preliminary sales agreement announced today is in line with our strategy to streamline operations and focus on our core activities of tile, sanitaryware, faucet and tableware production. The MoU is the result of an extensive review that has taken place at board level,” said Abdallah Massaad, CEO, RAK Ceramics. “The terms of the agreement are in line with our business strategy of consolidation and the transfer of the asset makes extremely good financial sense. RAK Ceramics received a significant premium to our book value and to the initial cost of RAK LATICRETE.”
“RAK Ceramics has been an excellent partner in Dubai and throughout the region, said Erno de Bruijn, president, International Division of LATICRETE. “Through acquisitions and organic growth, LATICRETE has experienced tremendous international expansion and we are confident that by focusing on new product offerings and enhancing our operations in the Middle East we will continue to grow.”
The MoU is preliminary arrangement that is subject to finalisation through mandatory regulatory procedures. Once the sale has been completed, and after receiving the necessary financial and regulatory approvals, RAK Ceramics will publish a net financial impact report.