German sanitary fittings maker Grohe attracts four indicative bids

German sanitary fittings maker Grohe AG, which has been put on the block by its private equity owners, is reported to have attracted four indicative bids.

Swiss rival Geberit AG, US-based Fortune Brands, Japan's Lixil and Brazil's Duratex have made tentative bids, Reuters reported over the weekend, citing two sources familiar with the deal.

Grohe has received six bids, the report said and added that companies often table tentative bids to get an opportunity to look at their rival's books, and often drop out when asked to make a binding offer.

The Bangkok Post last week reported that Thailand's Siam Cement Group has decided not to bid for Grohe and instead focus on the Asean region, where it has a strong foothold.

The bidders have until the end of August to conduct due diligence and make a formal offer.

Grohe's owners, TPG Capital and the private equity arm of Credit Suisse, are running a dual-track process of either selling the company or a stock market listing.

TPG Capital and Credit Suisse had acquired Grohe in 2004 from BC Partners for €1.5 billion

Founded by Friedrich Grohe in 1936, Dusseldorf-based Grohe manufactures and sells a full range of sanitary products and systems for residential, public and commercial installations.

It is a European market leader and one of the top three international manufacturers of sanitary fitting and has production plants in six locations including three in Germany, and one each in Portugal, Thailand and Canada.

Grohe, which acquired a 72-per cent stake in leading Chinese sanitary fittings producer Joyou in 2011, sells its products in 130 countries, and has a global market share of around eight per cent

Grohe, which generates 85 per cent of its annual sales outside of Germany, posted sales of €1.4 billion and adjusted earnings before interest, taxes, depreciation and amortisation of €273 million.