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METTLACH (dpa-AFX) - Ceramics manufacturer Villeroy & Boch wants to catch up with Europe's top-selling bathroom products manufacturers with a takeover. The plan is to buy the Ideal Standard Group, Villeroy & Boch announced Monday in Mettlach, Saarland. Corresponding contracts have already been signed. The purchase price is based on a valuation of Euro 600 million. The takeover is to be financed with existing funds and borrowed capital of around Euro 250 million.

The share price reacted to the news with an increase of around two percent. The company is currently valued on the stock exchange at just over half a billion euros.

The Ideal Standard Group offers, among other things, fittings for kitchen and bathroom and employs 7000 people worldwide. In 2022, the company had a turnover of 737 million euros. By comparison, Villeroy & Boch's sales in the same period were around Euro 995 million. The sellers are funds managed by Anchorage Capital Group and CVC Credit. The acquisition is expected to be completed in early 2024.

Villeroy & Boch had recently lowered its annual targets because the company is struggling in the weakening construction industry./jcf/zb/mis