Monday, February 28, 2011

Yu-expanding share of the acquisition of Grohe establish itself in China

 German manufacturer of high-end bathroom products instrument (Grohe) today announced that its massive holdings of the largest partners in China, Yu bathroom (Joyou) shares.

This acquisition is Grohe, through its wholly owned subsidiary of Grohe Ltd carried out in Asia to start a voluntary public tender offer. Grohe has claimed, the purchase price than the bathroom in the buildings in the last 3 months volume weighted average price of securities transactions in Germany increased by 5% estimate of 6%. After the acquisition, Grohe bathroom has a stake in the buildings holdings from 9.99% to 30%. After the transaction, Grohe bathroom will be following the founder of the family in the buildings after the second-largest shareholder.

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Grohe founded in 1936 by the TPG (Texas Pacific Group, Texas Pacific Group, founded in 1992, is a private investment partnership, the current assets under management of over 300 billion) and Credit Suisse (Credit Suisse) held its private equity fund, accounting for global market share 8%, which is Europe's largest (in terms of sales) manufacturer of bathroom products, global sales of single items is the world's first supplier of sanitary products and systems. In 2010, the company's revenue growth of nearly 20%, to 9.8 billion euros, operating profit increased by nearly 30%, to 2 billion euros.

Grohe CEO 戴维海内斯 (David J. Haines) revealed that the main purpose of this transaction is the middle class in Asia, a huge market potential for mining. The buildings have 12% market share, with 3,600 sales outlets, and the high instrument in China, only 200 points of sale. For a long time, has high expectations of improved device market share in China, but the tap price reached for a thousand dollars, or even million of the enterprise, obstacles, coupled with its high-end positioning, it must be a vector to achieve the plan.

the other hand, the deal is good for the buildings, can effectively improve the management of buildings and brand awareness. Yu bathroom in March 2010 in the Frankfurt Stock Exchange, based in Fujian, when the issue price of 13 euros per share, issue 700 million shares (excluding green shoe mechanism Greenshoe, also known as million). If the shares in accordance with the calculation of the total 700 million, an increase of 20% high-instrument like the shares, according to the price of 13.50 euros per share, the acquisition will cost 18.9 million euros. The transaction is valued buildings on the 3.24 billion euros (437 million U.S. dollars).

Grohe bathroom and in the buildings in October 2009 are already working together, the buildings agreed to act as Grohe sanitary bathroom products company in the Chinese market vendors, was committed to the development of the buildings bathroom off the assembly line 50 regional distributors, sales of high instrument shop total number of products in 2010 to reach 500 or so.

bathroom in the Yu Cai Jilin chief operating officer, said the two sides will then have a more in-depth and comprehensive cooperation, including technology transfer and market expansion. market visibility.

win or be annexed?

But industry experts also remind one of the industry to be alert to this trend, the domestic enterprises and national premium brands become attached bathroom is usually a general offer.

concern for the market, in the bathroom Yu, founder, main shareholder of the construction and Cai Jilin Cai said they Grohe Holdings Limited signed a long-term cooperation agreement, according to the agreement, CAI will build and Cai Jilin will be held by their respective shares in the share of Yu (Yu shares in the share capital of 28.6%) into the high instrument Asia Limited. Through such arrangements, the buildings will take over Grohe companies in China, including marketing, help Grohe products in the Chinese market for further expansion.

urged the Environmental Protection

either acquisition or partnership, in the bathroom with Grohe Yu's moves are shaking the bathroom domestic market, especially in research and development and environmental protection inputs.

It is understood, Grohe in China will choose companies with the buildings, and a big reason is that bathroom in the Yu-Grohe environmental philosophy and the concept coincide. Music may be sections of high technology instruments reflects the commitment to environmental protection, built-in water-saving devices can limit the flow of 5.8 L / min, in the water at the same time, in function and design without compromise, resulting in the perfect water at the same time, easy water and energy. Meter section of the use of high technology products in the music can save water also means saving heating energy.

addition, the high instrument in the product packaging is also hard to pursue the concept of environmental protection, high-automation products packaged in half, so a lot of paper materials can reduce costs, and better contribute to environmental protection.

experts pointed out that with the deepening cooperation between the two companies, more and more products with high instrument into ordinary people's homes, the objective of China's high-end bathroom products will be made more environmentally friendly technology requirements.

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