TOKYO — LIXIL Corp. headquartered here announced June 28 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 at an enterprise value of $542 million (¥53.1 billion, $1=¥98) from an affiliate of Sun Capital Partners Inc.
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.
LIXIL Group, a ¥1.4 trillion ($15.3 billion) building products company, has been actively expanding its global business. LIXIL Group’s international sales reached approximately ¥200 billion, contributing over 14% of the sales for the fiscal year ended March 31, 2013, and will increase to approximately ¥300 billion 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. 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 Corp., 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 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.”
LIXIL is Japan's largest manufacturer group for building materials and housing equipment and has more than 75,000 employees worldwide. The Group recorded net sales of ¥1.4 trillion in FY ended March 2013. It offers comprehensive solutions in housing and lifestyle and an extensive product lineup from windows, tiles, front doors, kitchens, bathrooms, and toilets under the brand name of American Standard (Asia Pacific), INAX and Tostem.
In Japan, LIXIL is the biggest housing and building materials company with top share in eight different categories currently led by President Yoshiaki Fujimori. Those include approximately 55% share in exteriors, approximately 50% share in housing sashes/doors, approximately 50% in curtain walls and approximately 40% in sanitary wares. LIXIL also is a top brand in tiles, washstand cabinet units, bathroom units and kitchen units. LIXIL, through the integration, now has a vast and unique business portfolio.
American Standard manufactures of a wide range of kitchen and bath products for residential and commercial customers in the North America, Canada and Mexico. The company employs more than 5, 000 people and markets products under the brand names of American Standard, Jado, Porcher, Safety Tubs, Crane Plumbing, Eljer, Fiat and Decorative Panels International. Additional information is available at www.americanstandard.com.