RAK Ceramics inks 100% KLUDI Group acquisition deal
Ras Al Khaimah, United Arab Emirates, March 14, 2022: RAK Ceramics PJSC (Ticker: RAKCEC: Abu Dhabi), one of the largest ceramics lifestyle solutions providers in the world, announced today the signing of a Share Purchase Agreement for the 100% acquisition of KLUDI Group (including 49% of KLUDI RAK Joint Venture), at a total valuation of EUR 39 million.
KLUDI Group is an established leading German-based company engaged in manufacturing high-quality kitchen and bathroom faucets and showering systems. Nearly 100-years old, the company has a manufacturing footprint across Germany, Austria, Hungary and the UAE, which incorporates cutting-edge and innovative German-engineering technologies. KLUDI Group’s total revenues amount to around EUR 120 million, with sales across Europe, Asia, and the Middle East.
In 2007, RAK Ceramics entered into a joint venture with KLUDI Group, to establish the brand “KLUDI RAK”, for the production and sale of fittings in the Middle East. Over the years, this partnership has grown and proved to be successful and profitable, recording impressive growth and sustainable margins solidifying as such the company’s foundation to endure recent challenging market conditions.
The strategic acquisition of KLUDI Group represents an opportunity for RAK Ceramics to strengthen its growing existing core businesses across German and European markets; the brand is also anticipated to complete RAK Ceramics suite of products and grow its offering to include taps and faucets, strengthening as such KLUDI brand exposure in RAK Ceramics core markets. The transaction is expected to realise operational manufacturing synergies, leveraging both companies’ plants presence across Europe, the UAE and Asia.
Abdallah Massaad, Group CEO, RAK Ceramics said "This acquisition of KLUDI Group aligns to our growth strategy and commitment to strengthen our presence in core markets and focus on core products. It provides RAK Ceramics with the opportunity to spearhead our expansion into European markets and enhances our positioning in projects across the sanitaryware and faucets business. The acquisition, built on a long-standing partnership and a shared vision, opens up new opportunities for KLUDI Group as we aim to develop this historic and established European faucet brand further by funding its strategy and driving forward modernisation and digitalisation of the brand. This will also provide an opportunity for KLUDI Group to leverage on RAK Ceramics network to push further faucets value.”
Julian Henco, Group CEO, KLUDI Group said: "I am confident that this transaction will be extremely beneficial to all parties involved, including customers and shareholders. KLUDI Group is now a more robust, world-class taps and faucets brand that is well-positioned to capitalise on RAK Ceramics' extensive network to expand our product offering to markets that would not have been possible otherwise."
The transaction is conditional upon regulatory approval, and both parties are working closely to finalise the transaction which is scheduled to be implemented by May 31, 2022.