RAK Ceramics acquires the Sauerland-based fittings specialist Kludi
Decisive step for the international growth strategy and the further development into one of the most advanced fittings manufacturers
RAK Ceramics, a UAE-based leading ceramic lifestyle solution provider and ranked among the Top-5 Ceramic manufacturers, acquires the Sauerland-based fittings manufacturer Kludi. The company signed an agreement on this with the previous owner this morning. The transaction is to be implemented by May 31, 2022, subject to closing conditions.
With the new owner, Kludi is securing support and financial backing for the continued implementation of its growth strategy and the significant intensification of the modernization of production and logistics initiated in 2018, also from a sustainability perspective. Until recently, the company's shares were held in third generation by Franz Scheffer, the grandson of the company's founder, who will exit the company with this step. The present management will remain in office.
The agreement offers a range of advantages for Kludi's employees, customers and suppliers: With RAK Ceramics, Kludi has a strong, well-funded partner by its side who is convinced of the strategic orientation of the German premium brand, and can further develop the company and drive forward digitalization. The independence of the Kludi brand will be preserved. The acquisition builds on a long-standing partnership and opens up new opportunities for Kludi. RAK Ceramics and Kludi have already been linked for 16 years by the successful joint venture Kludi RAK in the UAE for the production and sale of fittings.
Abdallah Massaad, Group Chief Executive Officer (CEO) of RAK Ceramics Group, says: "This acquisition of KLUDI Group aligns to our growth strategy and commitment to strengthen our presence in core markets and focus on core products. It provides RAK Ceramics with the opportunity to spearhead our expansion into European markets and enhances our positioning in projects across the sanitaryware and faucets business. The acquisition, built on a long-standing partnership and a shared vision, opens up new opportunities for KLUDI Group as we aim to develop this historic and established European faucet brand further by funding its strategy and driving forward modernisation and digitalisation of the brand. This will also provide an opportunity for KLUDI Group to leverage on RAK Ceramics network to push further faucets value."
Julian Henco, Chairman of the Management Board of Kludi, adds: "In RAK Ceramics, we have found an industrial investor from our industry with whom we have been working together successfully and in a trustful relationship since 2006. It follows a long-term strategy that will enable Kludi to sustainably continue the growth strategy it has been pursuing in recent years and to develop into one of the market leaders in the fittings industry. Both companies and brands complement each other perfectly, ensuring that synergies can be leveraged most effectively in the future. This will enable further investments in strengthening the Menden site and in Kludi's future competitiveness. The entry of RAK Ceramics gives Kludi new access to exciting international markets. Nevertheless, one thing is certain: Kludi is and will remain an independent, German mid-sized company".
RAK Ceramics is one of the largest ceramics’ brands in the world. The company has approx. 15,000 employees worldwide and specializes in in ceramic and gres porcelain wall and floor tiles, tableware, sanitaryware and faucets. It serves customers in more than 150 countries with operations on every continent. RAK Ceramics is a publicly listed company on the Abu Dhabi Securities Exchange in the United Arab Emirates and as a group has an annual turnover of approximately US$1 billion.
Kludi - founded in 1926 - currently has around 860 employees, about 350 work at its headquarters in Menden, Germany, 140 at other production sites in Hornstein, Austria, and about 230 in Diósd, Hungary. In fiscal year 2021, sales increased by almost ten percent year-on-year to 118.3 million euros. Over the past three and a half years, the company has undertaken a transformation program. As part of this process, Kludi has recruited many young new executives who have modernized the company in terms of marketing and sales and also in terms of production, supply chain and digitization. Kludi enjoys a national and international reputation far beyond its industry as a quality manufacturer of premium bathroom and kitchen fittings and as a key innovator in the sector. The company has already received numerous awards for this. For example, it was most recently named one of the "Top 100 Innovators" in Germany in 2022.