DBJ and LIXIL Corporation to Acquire the Shares ofGROHE Group S.a r.l. through Joint Investment

Development Bank of Japan (DBJ ; President and Chief Executive Officer : Toru Hashimoto) and the LIXIL Corporation (President and CEO: Yoshiaki Fujimori), the largest housing and building materials company in Japan, have agreed to acquire an 87.5% equity interest in GROHE Group S.a r.l., based in Luxembourg, from Glacier Luxembourg One S.a r.l., also Luxembourg-based, through a special purpose company in which each will hold 50% of voting rights. DBJ and LIXIL have further announced their intention to acquire shares of Joyou AG, a listed subsidiary of GROHE based in Germany, in a future takeover bid.

The joint investment will utilize DBJ’s Value for Growth Investment Program, an equity investment scheme designed to create added value in support of corporate growth strategies. By augmenting its financial support with supplementary resources such as expertise, personnel, and information networks both at home and abroad, DBJ believes it can help GROHE to maintain and reinforce its competitiveness and LIXIL to enhance the value of its entire corporate group.

GROHE is Europe’s largest manufacturer of sanitary fittings. Best known in Germany, it enjoys one of the most well-known brands in the global sanitary market. Its products are sold in more than 130 countries, where their outstanding quality and design make them a favorite of top hotels, luxury apartment buildings and other properties. GROHE is also actively expanding its business in China, where it holds a 72.3% share of Joyou, a leading faucet and sanitary ware manufacturer in China.

In its interim business outlook of May 2013, the LIXIL Group announced its intention to become “the global leader in the building materials and housing equipment industry”. In pursuit of this goal, the firm acquired the Italian curtain wall manufacturer Permasteelisa in 2011, and American Standard Brands in the USA this year, the maker of bathroom and kitchen fixtures. By assisting the LIXIL Group in securing a foothold for global development in the sanitary fittings field and expanding its sales network in Asia, DBJ views its role in the forthcoming joint investment as significant in strengthening Japan’s industrial competitiveness.


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