RAK Ceramics, one of the leading tiles and sanitaryware brands from UAE has inked the deal to acquire Kludi Group, a luxury kitchen and bathroom faucet and showering system brand at a total valuation of 39 mn Euros. A report by SURFACES REPORTER.
RAK Ceramics has recently signed a share purchase agreement for the 100 per cent acquisition of Kludi Group, including 49 per cent of Kludi RAK Joint Venture, at a total valuation of 39 million euros. Headquartered in the United Arab Emirates, with the current acquisition, the UAE- based brand is looking forward to strengthen its position across European market.
Germany-based Kludi Group is a nearly 100-years old brand engaged in manufacturing high quality kitchen and bathroom faucets and showering systems. With a footprint spread across Germany, Austria, Hungary and the UAE, KLUDI Group's total revenues amount to around EUR 120 million, with sales across Europe, Asia, and the Middle East.
RAK Ceramics entered into a Joint Venture (JV) with Kludi Group in 2007to establish the brand“Kludi RAK”, for the production and sale of fittings in the Middle East. The partnership proved to be a fruitful one with impressive growth and sustianable profit margins.
The current acquisition will present an opportunity for RAK Ceramics to strengthen its core business 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, "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,” he said.
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.