Lixil CEO: Grohe would be its last big M&A deal for some time
Japan's Lixil Group Corp would take a break from major acquisitions if it completes a planned $4 billion deal for European bathroom fixtures maker Grohe, the chief executive of Lixil told Reuters on Thursday.
Speaking after an unrelated gathering in Tokyo, Yoshiaki Fujimori also said Lixil would not issue new shares for the acquisition, which would be financed in part by funds from the state-owned Development Bank of Japan.
The Grohe deal would come on top of a string of recent acqiusitions including the $542 million purchase of U.S. toilet and plumbing fixtures maker American Standard in August and a 575 million euro ($776.7 million) deal for Italian curtain wall maker Permasteelisa in 2011.
"This is probably it for the time being, because we've done American Standard, we've done Permasteelisa," Fujimori said, adding that the company would focus on integrating the companies it had purchased rather than continue seeking other big deals.
Fujimori said Lixil had reached agreement on major terms for a purchase of Grohe, although there were still some issues that needed to be ironed out. He said an announcement on the deal was likely later on Thursday.