Sanitec acquisition

On October 14, 2014, Geberit AG announced that it was making an offer to Sanitec’s shareholders to acquire their shares at a price of SEK 97 each, corresponding to a total transaction value of CHF 1.21 billion for 100% of the shares. The offer represented a premium of 29% compared to the volume-weighted average price of the Sanitec shares on the Stockholm Stock Exchange over the preceding three months.

The relevant antitrust authorities have granted all the required approvals. At the end of the acceptance period on February 2, 2015, 99.27% of the shares had been tendered to Geberit. The purchase/sale of these shares was effected on February 10, 2015, and was completely financed by Geberit, using its own funds as well as taking on new debt. A squeeze-out procedure is being implemented for the remaining shares.

Sanitec is a leading European producer and supplier of bathroom ceramics, with net sales of EUR 689 million in 2014 and an EBIT margin of 11.4%. The company employs 6,200 people in 18 production facilities and 24 sales units. Sanitec sells its products primarily in Europe under 14 leading brands that are firmly established in their local markets.

For Geberit, the acquisition of Sanitec represents an expansion of its strategic focus. The future product portfolio will be enhanced with bathroom ceramics. The new company will be the market leader for sanitary products in Europe, combining technical know-how in sanitary technology “behind the wall” with design expertise “in front of the wall”.

According to a pro forma calculation that was communicated in the announcement on October 14, 2014, and which was based on 2013 figures and did not take into account synergies of the combination, the combined company generated net sales of approximately CHF 2.9 billion with an operating profit (EBIT) of just under CHF 600 million, corresponding to an EBIT margin of around 21%. Net income was just under CHF 500 million, which corresponds to a return on sales of approximately 17%.