RAK Ceramics signs agreement to acquire KLUDI Group
RAK Ceramics PJSC, one of the world’s largest ceramic groups, announced the acquisition of 100% of the KLUDI Group for a total valuation of EUR 39 million.
Based in Germany, the Kludi Group is a leading manufacturer of high-quality faucets and shower systems. The company, which is almost 100 years old, has production bases in Germany, Austria, Hungary and the United Arab Emirates, and boasts innovative, state-of-the-art engineering technologies. The KLUDI Group’s total revenues amount to more than 120 million euros, with sales in Europe, Asia and the Middle East.In 2007, RAK Ceramics entered into a joint venture with KLUDI Group, creating the “KLUDI RAK” brand for the production and sale of faucets in the Middle East. Over the years, this partnership has grown and proved to be successful and profitable, registering remarkable growth and sustainable margins, consolidating the company’s foundation and enabling it to withstand recent difficult market conditions.
The strategic acquisition provides RAK Ceramics with the opportunity to strengthen its core growth businesses in the German-speaking and Western European markets. The brand is also expected to complement RAK Ceramics’ product suite and expand its offering to include a new range of faucets and mixers, thereby strengthening KLUDI’s brand exposure in RAK Ceramics’ core markets. The transaction will create manufacturing and operational synergies by leveraging both companies’ facilities in Europe, UAE and Asia.
Abdallah Massaad, Group CEO, RAK Ceramics said: “The acquisition of the KLUDI Group is in line with our growth strategy and our intention to strengthen our presence in key markets and focus on key products. This agreement gives RAK Ceramics the opportunity to advance our expansion in European markets and improves our positioning for projects in the sanitary and faucet industry. The acquisition, based on a long-standing partnership and shared vision, opens up new opportunities for the KLUDI Group as we aim to further develop the company, invest in its strategy and drive forward the modernisation and digitalisation of the brand. This will also provide an opportunity for the KLUDI Group to leverage the RAK Ceramics network to further increase the value of our faucet products.”
Julian Henco, Group CEO, KLUDI Group said, “I am confident that this agreement will be extremely beneficial for all parties involved, including customers and shareholders. The KLUDI Group is now a stronger, world-class faucet and mixer brand and is therefore well positioned to capitalize on RAK Ceramics’ extensive network and expand our product offering to markets that would not otherwise be accessible.”
The acquisition is subject to regulatory approval by the applicable authorities, and both parties are working closely together to finalise the transaction which is expected to be implemented by 31 May 2022.