RAK Ceramics inks 100% KLUDI Group acquisition deal
RAK Ceramics PJSC, one of the largest ceramics lifestyle solutions providers in the world, announced today the signing of a Share Purchase Agreement for the 100% acquisition of KLUDI Group (including 49% of KLUDI RAK Joint Venture), at a total valuation of EUR 39 million.
Pictured: Abdallah Massaad, group chief executive of RAK Ceramics, left, with Julian Henco, group chief executive of Kludi Group.
KLUDI Group is an established leading German-based company engaged in manufacturing high-quality kitchen and bathroom faucets and showering systems. Nearly 100-years old, the company has a manufacturing footprint across Germany, Austria, Hungary and the UAE, which incorporates cutting-edge and innovative German-engineering technologies. KLUDI Group’s total revenues amount to around EUR 120 million, with sales across Europe, Asia, and the Middle East.
In 2007, RAK Ceramics entered into a joint venture with KLUDI Group, to establish the brand “KLUDI RAK”, for the production and sale of fittings in the Middle East. Over the years, this partnership has grown and proved to be successful and profitable, recording impressive growth and sustainable margins solidifying as such the company’s foundation to endure recent challenging market conditions.
The strategic acquisition of KLUDI Group represents an opportunity for RAK Ceramics to strengthen its growing existing core businesses across German and European markets; the brand is also anticipated to complete RAK Ceramics suite of products and grow its offering to include taps and faucets, strengthening as such KLUDI brand exposure in RAK Ceramics core markets. The transaction is expected to realise operational manufacturing synergies, leveraging both companies’ plants presence across Europe, the UAE and Asia.
Abdallah Massaad, Group CEO, RAK Ceramics said “This acquisition of KLUDI Group aligns to our growth strategy and commitment to strengthen our presence in core markets and focus on core products. It provides RAK Ceramics with the opportunity to spearhead our expansion into European markets and enhances our positioning in projects across the sanitaryware and faucets business. The acquisition, built on a long-standing partnership and a shared vision, opens up new opportunities for KLUDI Group as we aim to develop this historic and established European faucet brand further by funding its strategy and driving forward modernisation and digitalisation of the brand.
This will also provide an opportunity for KLUDI Group to leverage on RAK Ceramics network to push further faucets value.”
Julian Henco, Group CEO, KLUDI Group said: “I am confident that this transaction will be extremely beneficial to all parties involved, including customers and shareholders. KLUDI Group is now a more robust, world-class taps and faucets brand that is well-positioned to capitalise on RAK Ceramics’ extensive network to expand our product offering to markets that would not have been possible otherwise.”
The transaction is conditional upon regulatory approval, and both parties are working closely to finalise the transaction which is scheduled to be implemented by May 31, 2022.
About RAK Ceramics
RAK Ceramics is one of the largest ceramics’ brands in the world. Specialising in ceramic and gres porcelain wall and floor tiles, tableware, sanitaryware and faucets, the Company has the capacity to produce 118 million square metres of tiles, 5 million pieces of sanitaryware, 24 million pieces of porcelain tableware and 1 million pieces of faucets per year at its 21 state-of-the-art plants across the United Arab Emirates, India and Bangladesh.
Founded in 1989 and headquartered in the United Arab Emirates, RAK Ceramics serves clients in more than 150 countries through its network of operational hubs in Europe, Middle East and North Africa, Asia, North and South America and Australia.
RAK Ceramics is a publicly listed company on the Abu Dhabi Securities Exchange in the United Arab Emirates and as a group has an annual turnover of approximately US$1 billion.
About KLUDI Group
Founded in 1926, KLUDI Group currently has around 860 employees. Over the past three and a half years, the company has undertaken a transformation program, modernizing the company in terms of marketing and sales and production, supply chain and digitalisation. KLUDI Group enjoys a national and international reputation far beyond its industry as a quality manufacturer of premium bathroom and kitchen fittings and as a key innovator in the sector. The company has already received numerous awards for this. For example, it was most recently named one of the “Top 100 Innovators” in Germany in 2022.
Further information is available online at www.rakceramics.com