Rak Ceramics has acquired 100% of the German brassware and showering systems specialist Kludi Group in a deal totalling €39 million (£32.7m).
UAE-based Rak Ceramics said that the strategic acquisition of the Kludi Group was an opportunity for Rak Ceramics to strengthen its growing core business across Germany and European markets and complete the Rak suite of products by growing its offering to include taps and faucets.
The deal also included a 49% share of the Kludi Rak Joint Venture the company entered into in 2007 for the production and sales of fittings in the Middle East – a partnership it says has grown and proven successful and profitable, recording “impressive growth and sustainable margins”.
Kludi Group’s, which was founded in 1926 and now employs around 860 staff, has total revenues amount to around #120 million with sales across Europe, Asia and the Middle east, with a manufacturing footprint across Germany, Austria, Hungary and the UAE.
The company said it expected the acquisition to realise operational synergies, leveraging both companies’ manufacturing presence across Europe, the UAE and Asia.
Rak Ceramics group chief executive Abdallah Massaad, (pictured left) 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.”
Speaking on behalf of the Kludi Group, group CEO Julian Hence (pictured right) 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 deal should be completed, subject to regulatory approval, by May 31.
