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Lixil to pay $4 billion for Grohe of Germany

AFP-JIJI

German sanitary fittings maker Grohe said Thursday that housing and building materials company Lixil has agreed to take it over in a deal valuing the German group at €3.06 billion ($4.1 billion).

Grohe “has entered into an agreement with Lixil and Development Bank of Japan in relation to the sale of an 87.5 percent equity interest in Grohe. This transaction represents the largest ever German investment by a Japanese company,” the German group said in a statement.

Grohe said its current owners would sell their stakes to a company jointly owned by Tokyo-based Lixil and DBJ.

“The implied enterprise value, including the assumption of debt, is €3.06 billion. The transaction is subject to customary regulatory and antitrust approvals and is expected to close in the first quarter of 2014,” the statement said.