German bathroom firm Grohe sold to Japan's Lixil

Grohe bath tap Grohe makes high-end bathroom and kitchen fittings

Luxury bathroom fittings maker Grohe has agreed to a takeover offer from Japanese building materials company Lixil.

Under the deal Lixil and the Development Bank of Japan have agreed to buy an 87.5% stake in the German firm, valuing it at $4.1bn (£2.5bn).

It is the largest takeover to date of a German firm by a Japanese company.

Grohe is owned by private equity firm TPG Capital and the private equity business of Credit Suisse.

The German firm employs about 9,000 staff worldwide and has nine factories, including plants in Portugal, Thailand, Canada and China.

It also owns a controlling stake in Chinese tap maker Joyou.

Grohe's British chief executive, David Haines, will remain in his post and has signed a five-year contract.

"For Grohe and Joyou, Lixil is a perfect match" said Mr Haines in a statement.

"As a growth-oriented company, Lixil has always been the preferred partner to support us with our growth strategy, especially in emerging markets."

Combined, Grohe and Lixil will become the world's biggest maker of bathroom and kitchen accessories.

International expansion

In its most recent earnings announcement Grohe said that sales in the first half of 2013 rose 5% to 730m euros ($987m; £614m).

Under the leadership of chief executive Yoshiaki Fukimori, Lixil has expanded its international operations.

In June, it spent $542m buying American Standard Brands, a US maker of bathroom and kitchen accessories.

It has also expanded in the engineering sector with the purchase of Italy's Permasteelisa in 2011.

More on This Story

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

BBC Business Live

  1.  
  2.  
    MOTORING ON 08:07:
    Nissan working on the Qashqai

    Almost 8 out of 10 cars built in the UK is exported to another part of the world - who said we don't export anything these days? That's according to the latest data from the Society of Motor Manufacturers and Traders (SMMT). It adds 5m cars have been made and shipped out of the UK since 2010, which is the best performance of any decade.

     
  3.  
    CHARITY GIVING 07:53: Radio 5 live

    "People aren't motivated by the tax element," of giving to charity, says Anne-Marie Huby of JustGiving. Charities qualify for a number of tax exemptions and reliefs on income and capital gains, and on profits for some activities.

     
  4.  
    CHARITY GIVING 07:40: Radio 5 live

    Anne-Marie Huby, co-founder of charity donation company JustGiving, is on Wake Up to Money talking about which is the most generous town in Britain. It's Bedford. She's not sure which is the tightest, though.

     
  5.  
    SAGE OF OMAHA FINED 07:26:
    Warren Buffett

    Proof that we are all human comes from the FT this morning, which reports that Warren Buffett's Berkshire Hathaway has been fined nearly $1m (£603,319) by the US Department of Justice for allegedly breaching reporting requirements when building a stake in a construction supplies company. In fairness, it's basically pocket change to a man like Buffett.

     
  6.  
    WH SMITH 07:11:
    A man walks past a WH Smith store

    WH Smith said its high street business delivered a "good performance" for the year to the end of August. It publishes full results on 16 October. It expects earnings to meet analyst forecasts.

     
  7.  
    JACKSON HOLE 07:00: BBC Radio 4

    It's that time of year when central bank policymakers come to together to discuss interest rates, inflation general world economic matters - otherwise known as Jackson Hole. Pippa Malmgrem a former advisor to President Bush on all things economic tells Today this year's meeting could be more interesting than previous years because the private sector - the banks which have been the main beneficiaries of monetary policy in recent years - have been uninvited. That, she says, is because the central banks want to have an argument and want to do it behind closed doors.

     
  8.  
    BANK OF AMERICA FINE 06:45: BBC Radio 4

    Colin McLean of SVM Asset Management tells the Today programme that an expected fine for US bank, Bank of America, will be paid half in cash and half in customer redress. There have been rumours for days that the matter with US regulators is about to be settled, he says. We're awaiting the official announcement today. The fine is expected to be the biggest in corporate history but McLean says: "Nobody wants to put the banks out of business. They really want to draw a line under this, so this does that and will let them move forward."

     
  9.  
    INTEREST RATES 06:29: Radio 5 live

    "It's normal for there to be a slight difference of view," economist Marian Bell, a former Monetary Policy Committee member tells Wake Up to Money following yesterday's minutes on the interest rate decision. Two people wanted to hike the rate from its record low. "I agree wage growth is muted... it's not an argument for not moving interest rates to a more normal setting." She'd increase it by one eighth of a percentage point.

     
  10.  
    BALFOUR MERGER 06:17: Radio 5 live

    Colin McLean of SVM Asset Management is on Wake Up to Money talking about building firms Carillion and Balfour Beatty's will-they-won't-they merger talks. Balfour rejected another offer yesterday. "It may not be the end of it," he says. "It just depends the way people are approached... These things don't ever die".

     
  11.  
    CELEBRITY ENDORSEMENTS 06:05: Radio 5 live

    Andy Milligan, a brand consultant, is on 5 live. How come some celebrity endorsements do well and some fail? "When it goes wrong there's a problem with credibility," he says. "In some cases we've never heard of them." George Foreman and his grill worked well because boxers want to eat healthy protein, he says.

     
  12.  
    06:01: Howard Mustoe Business reporter

    Morning! Get in touch with us via email: bizlivepage@bbc.co.uk or on twitter @BBCBusiness.

     
  13.  
    06:00: Matthew West Business Reporter

    Morning folks. So what's new? Well, the Labour party is pledging this morning to give the energy regulator greater powers, while the US Federal Reserve has warned there is more slack in the labour market than first thought. We have public borrowing figures out later, while interest rates are still being discussed following the release of the Bank of England minutes yesterday. Stay with us - there'll be more.

     

Features

  • Baby being handed overFraught world

    The legal confusion over UK surrogate births


  • Bad resultsBlame game

    The best excuses to use when exam results don't make the grade


  • Police respond to a shooting in Santa MonicaTrigger decision

    What really happens before a police officer fires his gun?


  • Child injured by what activists say were two air strikes in the north-eastern Damascus suburb of Douma (3 August 2014)'No-one cares'

    Hope fades for Syrians one year after chemical attack


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.