Clifford Chance advised bathroom fitting specialist Grohe Group on its takeover by Lixil Corporation, a Japanese building materials and housing equipment producer. The takeover is based on a dual-track sale process in which Grohe Group contemplated both an IPO and a trade sale.

Lixil Corporation and the Development Bank of Japan have entered into an agreement to acquire an 87.5% equity interest in Grohe Group from Texas Pacific Group (TPG) and DLJ Merchant Banking Partners, which had purchased their holdings in 2004. The implied enterprise value, including debts, is EUR 3.06 billion. The transaction is subject to customary regulatory and antitrust approvals and looks set to be completed in Q1 2014. Grohe Group and its Chinese subsidiary Joyou will become an affiliated company of Lixil Corporation.

Headed by Grohe Group S.à r.l. Luxembourg, Grohe Group has a global workforce averaging 9,000 employees (including around 3,400 at Joyou and a German workforce of 2,300). Grohe Group generated consolidated sales of around EUR 1.4 billion in 2012.

The Clifford Chance team was led by partners Dr. Andreas Dietzel (Corporate) and Markus Pfüller (Banking & Capital Markets) and comprised counsel Jörg Rhiel, partner Dr. Wolfgang Richter, senior associate Melissa Bach, transaction lawyers Julia Wahls and Moritz Erdmann (all Corporate), as well as partner Dr. George Hacket, counsel Barbora Moring, associate Ryan Dunmire (all  US Law, Banking & Capital Markets) and counsels Philipp von Ploetz and Christian Wöckener-Erten, senior associate Dr. Axel Wittmann and associates Juliane Pogadl, Miao Lin (all Banking & Capital Markets), partner Dr. Felix Mühlhäuser (Tax) – all Frankfurt – and partner Marc Besen (Antitrust, Düsseldorf). The Clifford Chance offices in Luxembourg, Bangkok and New York were also involved.