Bathroom brand Villeroy & Boch AG has acquired Ideal Standard from Anchorage Capital Group and CVC Credit, with the transaction expected to complete in early 2024.
The acquisition price is based on a company valuation of approximately €600 million and Villeroy & Boch is financing the transaction from its own liquid funds, with borrowing of € 250 million.
Villeroy & Boch has previously been linked to an acquisition of Ideal Standard, with the merged company now becoming one of Europe’s largest manufacturers of bathroom products.
According to Villeroy & Boch, the two companies are a “strong” strategic fit, given their regional presence, sales strategies and product and brand portfolios and lay the foundation for growth.
Villeroy & Boch has a “strong” geographical basis in Central and Northern Europe as well as Asia, while Ideal Standard UK, Italy and the Middle East / North Africa region in particular.
It will see the revenue of the Villeroy & Boch Bathroom & Wellness Division double to €1.4 billion as a result of the merger.
Including the Dining & Lifestyle business, it represents an increase to over 1.7 billion euros (around € 995 million in the 2022 financial year) for the Group as a whole.
“This merger means that we will now catch up with the largest players on the European market in the bathroom sector in terms of turnover,” explained Frank Göring, CEO of Villeroy & Boch.
“Our complementary strengths also make us more competitive and significantly improve our starting position for achieving additional growth.”
While Villeroy & Boch’s sales focus primarily on a high-end private customer base, Ideal Standard has expertise in the project business, including for the public sector, the healthcare sector and for developers of large residential, hotel and commercial properties.
In addition, alongside a broad range of ceramic bathroom ware and other products, Ideal Standard has an established fittings business, which generated more than a third of its revenue last financial year.
Ideal Standard CEO Jan Peter Tewes said: “Villeroy & Boch and Ideal Standard complement each other, in terms of products but also in terms of brands, and will gain mutual benefit from their different sales channels.
“Both companies will play a key role in charting the future course of the industry. We look forward to this development!”
In addition to the strategic fit, Frank Göring pointed to the historical and cultural similarities between Villeroy & Boch and Ideal Standard: “We are characterised by strong brands steeped in tradition and share similar values.
“These include a pronounced service orientation, a flair for good design and a constant striving for innovation.
“We are delighted that the employees of Ideal Standard will become part of our global organisation after the closing of the transaction.
“Our clients will benefit from this combined expertise and an expanded offering.”
Chairman of the Supervisory Board at Villeroy & Boch Andreas Schmid added: “The bathrooms sector remains a fast-moving global growth market, but it is a market in which scale effects will be increasingly important to remaining competitive and attracting future investment.
“For this reason alone, the acquisition represents the right strategic step for Villeroy & Boch. In addition, Ideal Standard is an excellent extension to our own business model.
“ This heralds a new era for the Bathroom & Wellness Division and for Villeroy & Boch as a whole,”