Five suitors submit final bids for German bathroom fittings maker Grohe
14 Sep 2013
Five suitors have submitted final bids for Grohe AG, in a transaction that could bring the private equity owners of the German bathroom fittings maker, around $3 billion, making it possibly one of the largest European private equity sales during the year so far.
Switzerland's Geberit, Japan's Lixil, Brazil's Duratex and two private equity firms have tabled final bids before yesterday's midnight deadline, the report said.
US-based Fortune Brands has dropped out of the auction, the report added.
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 have valued Grohe, Europe's biggest sanitary fittings maker, at up to €4 billion ($5 billion) including debt, and may still opt for an IPO.
TPG Capital and Credit Suisse had acquired in 2004 from BC Partners for €1.5 billion.
Founded by Friedrich Grohe in 1936, Grohe is the world's leading provider of sanitary fittings with production plants in six locations including three in Germany, and one each in Portugal, Thailand and Canada.
Grohe says that its products are sold in 130 countries and has a global market share of around eight per cent.
In 2011 Grohe had acquired a 72-per cent stake in leading Chinese sanitary fittings producer Joyou.
The Dusseldorf-based company, 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.
