Premium bathroom brand Villeroy & Boch has announced it is considering plans to acquire the Ideal Standard group.
It includes the Ideal Standard, Armitage Shanks and Sottini brands in the UK.
Family-owned Villeroy & Boch, which was founded in 1748, had responded to media speculation but stated the evaluation was at an early stage.
It reported in an official statement: “The company’s corporate bodies have not taken any binding decisions on whether or not to make the acquisition, nor on any economic parameters.
“It is therefore also possible that the Villeroy & Boch AG will not further pursue the project or that an acquisition by effected for any other reasons.”
Ideal Standard is privately owned by Anchorage Capital and CVC Credit Partners and has achieved annual sales of €730million, with a 20% improvement in earnings, following a three-year turnaround.
According to a statement from Ideal Standard: “The shareholders always explore all potential options to best secure the future strategic development of Ideal Standard, either as a stand-alone business or in synergetic combination with other marketing leading players.”
Villeroy & Boch reported a strong final quarter in its preliminary revenue figures for 2019, with growth driven by its Bathroom and Wellness Division (+3%), as well as Tableware (+4.8%).
It saw the company generate preliminary revenue, including licence income, of €833million for 2019.
Villeroy & Boch, therefore, met its revised target of €825-€850million, as announced after the first six months of 2019.
The company has stated it also expects to meet its revised EBIT target of between €48million and €52million.
In addition, the sale of a property in Luxembourg realised an eight-figure non-recurring income.
Final figures for the fourth quarter and the 2019 financial year will be presented on February 6, 2020.
Villeroy & Boch recently announced a move into kitchen furniture, partnering with German manufacturer Stormer.