Kitchen & Bath Products Leader Will Serve as Platform for North American Presence as LIXIL Continues Globalization of Business
TOKYO, June 28, 2013 /PRNewswire/ – LIXIL Corporation (Headquarters: Tokyo, Japan; President: Yoshiaki Fujimori), today announced that it has reached a definitive agreement to acquire 100% of the share capital of ASD Americas Holding Corp., the parent company of American Standard Brands (Headquarters: New Jersey, US; President and CEO: Jay Gould, hereafter called “American Standard”) at an enterprise value of $542 million (53.1 billion JPY, $1=98JPY) from an affiliate of Sun Capital Partners, Inc. (”Sun Capital”) (Headquarters: US).
American Standard is a leading North American manufacturer of a wide range of high quality kitchen and bath products. On completion of the transaction, which is subject to regulatory approval, the company will remain headquartered in the U.S., and continue operating all existing facilities.
LIXIL Group, 1.4 trillion JPY ($15.3 billion, $1= 94.05JPY) building products company, has been actively expanding its global business. LIXIL Group’s international sales reached approximately 200 billion JPY, contributing over 14% of the sales for the fiscal year ended March 31, 2013 and will increase to approximately 300 billion JPY comprising approximately 20% of LIXIL Group revenues. LIXIL’s global operations are present in more than 30 countries. In North America, Permasteelisa Group, a high-end curtain wall contractor owned by LIXIL Group, has existing revenues of approximately 30 billion JPY. The addition of American Standard will provide LIXIL with greater scale and more opportunities in North America, and will continue the growth of the international business towards its mid-term goals.
Yoshiaki Fujimori, President of LIXIL Corporation, said, “American Standard is the leader in the kitchen and bath products market with a deep history of more than 130 years. LIXIL is targeting 1 trillion JPY sales revenue in its international businesses, with the goal for the international business to grow to approximately 30% of total LIXIL Group revenues. American Standard will serve as a key platform for LIXIL as we continue to fulfill our ambitions to become a worldwide leader in the building materials and housing equipment market. LIXIL already owns the American Standard brand in the Asia Pacific market, and this transaction will strengthen the brand and the company’s considerable manufacturing capabilities and technological best practices.”
“This transaction marks an exciting chapter in our 137-year history,” said Jay Gould, American Standard Brands President and CEO. “We and our customers will surely benefit by combining LIXIL’s quality control, manufacturing technology and product development with American Standard’s sales networks, and I believe these will help the company maintain our position as a market leader.”
“The market leadership that American Standard enjoys today has been fueled by considerable operational improvements, an expanded product platform achieved through four strategic acquisitions, and a commitment to innovation,” said Marc Leder, Co-CEO at Sun Capital, a leading private investment firm specializing in leveraged buyouts and investments in market–leading companies. “I expect LIXIL will continue to invest in these strategies, and that the combined technology and product development capabilities of American Standard and LIXIL will ensure significant progress in the years ahead.”
About LIXIL Corporation
LIXIL is Japan’s largest manufacturer group for building materials and housing equipment and has more than 75,000 employees worldwide. The Group recorded net sales of 1.4 trillion JPY in FY ended March 2013. It offers comprehensive solutions in housing and lifestyle and an extensive product lineup from windows, tiles, front doors, kitchens, bathrooms, and toilets under the brand name of American Standard (Asia Pacific), INAX and Tostem.
In Japan, LIXIL is the biggest housing and building materials company with top share in eight different categories currently led by President Yoshiaki Fujimori. Those include approx. 55% share in exteriors, approx. 50% share in housing sashes/doors, approx. 50% in curtain walls and approx. 40% in sanitary wares. LIXIL also is a top brand in tiles, washstand cabinet units, bathroom units and kitchen units. LIXIL, through the integration, now has a vast and unique business portfolio.
In the global market, its operations are led by group companies, such as Permasteelisa Group, which has strong presence in the curtain wall business with unmatched technology and designs. Their projects in the US include: New York by Gehry, One Bryant Park in NY and San Francisco Federal Building.
For more information about LIXIL, please visit http://global.lixil.co.jp/
About American Standard
American Standard is a leading manufacturer of a wide range of high-quality kitchen and bath products for residential and commercial customers in the North America, Canada and Mexico. The company employs more than 5,000 people and markets products under the brand names of American Standard®, Jado®, Porcher®, Safety Tubs®, Crane Plumbing®, Eljer®, Fiat® and Decorative Panels International®.
About Sun Capital Partners, Inc.
Sun Capital Partners, Inc. is a leading private investment firm focused on leveraged buyouts, equity, debt, and other investments in companies that can benefit from its in–house operating professionals and experience. Sun Capital affiliates have invested in more than 320 companies worldwide with combined sales in excess of $45 billion since Sun Capital’s inception in 1995. Sun Capital has offices in Boca Raton, Los Angeles, and New York, as well as affiliates in London, Paris, Frankfurt, Luxembourg, Shanghai and Shenzhen. For more information, visit www.SunCapPart.com.