Villeroy & Boch AG has signed binding agreements to acquire operating companies in the Ideal Standard Group.
The two companies says they are are ‘a strong strategic fit’ given their regional presence, sales strategies, and product and brand portfolios, ‘laying the foundations for a stronger market position and additional growth’. In an industry with global growth potential, the integrated company will, after completion of the transaction, join the ranks of Europe’s biggest manufacturers of bathroom products.
The Ideal Standard shares are being sold by corporations under the management of Anchorage Capital Group and CVC Credit. The acquisition price is based on a company valuation of approximately € 600 million. The revenue of the Villeroy & Boch Bathroom & Wellness Division will double to € 1.4 billion as a result of the merger. Including the Dining & Lifestyle business, this represents an increase to over € 1.7 billion (around € 995 million in the 2022 financial year) for the Group as a whole.
“This merger means we will now catch up with the largest players on the European market in the bathroom sector in terms of turnover,” explains Frank Göring, CEO of Villeroy & Boch (pictured). “Our complementary strengths also make us more competitive and significantly improve our starting position for achieving additional growth.”
The two companies say the merger will create ‘a powerful combination of complementary established brand and sales strategies’. Villeroy & Boch has a strong geographical basis in Central and Northern Europe, as well as Asia, while Ideal Standard ‘enjoys an excellent reputation with its brand portfolio’ in the UK, Italy, and the Middle East / North Africa region in particular. While Villeroy & Boch’s sales strategy focuses primarily on a high-end private customer base, Ideal Standard possesses particular expertise in the project business – including for the public sector, the healthcare sector and for developers of large residential, hotel and commercial properties. In addition, alongside a broad range of ceramic bathroom ware and other products, Ideal Standard comes with an established fittings business, which generated more than a third of its revenue last financial year.
Jan Peter Tewes, Ideal Standard CEO, said: “Villeroy & Boch and Ideal Standard complement each other, in terms of products, but also in terms of brands, and will gain mutual benefit from their different sales channels. Both companies will play a key role in charting the future course of the industry. We look forward to this development.”
Frank Göring points also to the ‘cultural similarities’ between Villeroy & Boch and Ideal Standard. He said: “We are characterised by strong brands steeped in tradition, and share similar values. These include a pronounced service orientation, a flair for good design, and a constant striving for innovation. We are delighted the employees of Ideal Standard will become part of our global organisation after the closing of the transaction. Our clients will benefit from this combined expertise and an expanded offering.”
