GROHE Acquires Majority of WaterTech Portfolio of DAWN Ltd to Become the Market Leader in South Africa
July 3, 2014 - Luxembourg
GROHE Group S.à r.l. acquires the majority of the WaterTech portfolio of DAWN Ltd to become the market leader in South Africa. The new company to be named GROHE DAWN WaterTech Holdings Pty Ltd will be owned 51% by GROHE and 49% by DAWN. The brands include COBRA, which is coming home to the GROHE Group given both companies were founded by the same Friedrich Grohe. The transaction was announced today. It is still subject to regulatory approval as well as the approval by DAWN’s shareholders and is set for closing in autumn.
With gross sales of around € 110 million, DAWN’s sanitary fittings business segment grew by approx. ten percent in the last financial year. DAWN has a significant sanitary fittings market share in South Africa, which means that GROHE becomes one of the country’s leading suppliers of sanitary fittings as a result of the transaction.
The deal offers GROHE outstanding prospects for further sustained growth in the African market. GROHE gains production facilities in South Africa and will further expand its distribution network and business activities in neighbouring markets in the southern and eastern regions of the African continent. The partners of the new company agreed that this company will become the exclusive distributor for GROHE and JOYOU products in South Africa and other selected markets in sub-Saharan Africa.
“For us, acquiring DAWN’s WaterTech business is another major step inspired by compelling industrial logic,” said David J. Haines, CEO and Chairman of the GROHE Group S.à r.l. “As part of our sustainable growth strategy, we held our initial talks and negotiations with DAWN as early as the middle of last year with a view to expanding our activities in Africa’s southern region. DAWN’s position of strength in the South African market makes it the perfect partner, also for the continued expansion of the GROHE and JOYOU brands. In return, the new company will benefit from our expertise in research & development as well as design.”
Following the acquisition by GROHE, the management teams in the operating companies will remain unchanged. The executive committee of the new company shall be led by Julian Henco, previously Vice President Emerging Markets at GROHE and Derek Tod, CEO of the DAWN Group.
Through the joint endeavour with DAWN, GROHE is once again demonstrating its entrepreneurial vision in systematic pursuit of its sustainable growth strategy with partner LIXIL at its side.
About GROHE Group
GROHE Group comprises Grohe AG, Hemer,Joyou AG, Hamburg and other subsidiaries in foreign markets. GROHE Group is the world’s leading provider of sanitary fittings.
As a global brand for sanitary products and systems, GROHE relies on its brand values quality, technology, design and responsibility in order to be able to offer “Pure FreudeanWasser”.
The GROHE Group employs some 9,000 people on average worldwide (including around 3,400 at Joyou). There are about 2,300 employees working at GROHE in Germany. In 2012, the GROHE Group generated consolidated sales of €1,405 million.
The GROHE Group has nine production plants, of which six are located outside Germany, namely in Portugal, Thailand, Canada and China (Joyou). The company currently generates 85 percent of its sales outside Germany.
In January 2014, the GROHE Group has been taken over by the LIXIL Group and the Development Bank of Japan. The LIXIL Group is a global leader in the building materials and housing equipment industries. GROHE and JOYOU remain independent within the LIXIL Group.
About GROHE India Pvt. Ltd. (GIPL):
GROHE India Pvt. Ltd. (GIPL) is a wholly owned subsidiary of GROHE AG and has completed seven years of direct operations in India. In this time has acquired a dominant position in the Indian market as one of the largest selling foreign brands. GROHE launched its second Indian ‘GROHE Live! Centre’ in Mumbai in February 2012. This centre is a great opportunity for people to come and experience the world of GROHE. Besides featuring the entire range of GROHE products, the Live! Centre also showcases the GROHE elements of Quality, Technology and Design. GROHE has been recently awarded with two Good design Japan awards for its innovative products ‘MintaTouch‘ and ‘GROHE Blue mono‘, taking its 2013 tally to an impressive 18 awards. As an organisation, Grohe takes mutual responsibilities very seriously, examples of which can be seen with the successful launch of the Grohe Jal Academy at the Don Bosco Institute. This Academy trains underprivileged individuals to learn plumbing skills that can be utilised towards a lifelong vocation.
Source: Business Wire India