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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,
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.
1.4 trillion JPY (
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."