On 14 October 2014, Geberit AG announced that it was making an offer to Sanitec's shareholders to acquire their shares at a price of SEK 97 per share. This equated to a total transaction value of CHF 1.2 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.
At that time, Sanitec was a leading European producer and supplier of bathroom ceramics. The company achieved net sales of EUR 689 million and an EBIT margin of 11.4% in 2014, and employed 6,200 people in 18 production facilities and 24 sales units. Sanitec sold its products primarily in Europe under 14 leading brands that are firmly established in their local markets.
The relevant competition authorities granted all the required approvals in late January 2015. At the end of the acceptance period on 2 February 2015, 99.27% of the Sanitec shares had been tendered to Geberit. The purchase/sale of these shares was effected on 10 February 2015 and was financed by Geberit using its own funds as well as new debt. Following an extended acceptance period, Geberit held 99.77% of the shares, with a squeeze-out process instigated for the remaining shares and completed successfully in September 2015.
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 European market leader for sanitary products and will, in particular, strengthen its position in regions such as the Nordic Countries, France, United Kingdom and Eastern Europe, in which Geberit had not yet gained a firm foothold. It combines technical know-how in sanitary technology “behind the wall” with design expertise “in front of the wall”. The acquisition also supports the Group's key sales and earnings drivers and will create added value.
The integration activities, which began in the second quarter of 2015, went according to plan. By the end of 2015, the main organisational work was complete. In particular, the aim of operating as a single company in sales activities on all markets by 1 January 2016 was achieved. The focus in 2016 will be on further harmonising processes and realising early synergies.