RAK Ceramics, one of the largest ceramics lifestyle solutions providers in the world, has announced the signing of a Share Purchase Agreement for the 100% acquisition of KLUDI Group at a total valuation of EUR 39 million.
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.
The strategic acquisition of KLUDI Group represents an opportunity for RAK Ceramics to strenghten 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.
“This acquisition of KLUDI Group aligns to our growth strategy and commitment to strengthen our presence in core markets and focus on core products,” comments Abdallah Massaad, Group CEO, RAK Ceramics. “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.”