Lixil CEO: Grohe would be its last big M&A deal for some time

TOKYO Thu Sep 26, 2013 12:01am EDT

Related Topics

TOKYO (Reuters) - Japan's Lixil Group Corp (5938.T) would take a break from major acquisitions if it completes a planned $4 billion deal for European bathroom fixtures maker Grohe GROH.UL, 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.

($1 = 0.7403 euros)

(Reporting by Nathan Layne; Editing by Edmund Klamann)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

California state worker Albert Jagow (L) goes over his retirement options with Calpers Retirement Program Specialist JeanAnn Kirkpatrick at the Calpers regional office in Sacramento, California October 21, 2009. Calpers, the largest U.S. public pension fund, manages retirement benefits for more than 1.6 million people, with assets comparable in value to the entire GDP of Israel. The Calpers investment portfolio had a historic drop in value, going from a peak of $250 billion in the fall of 2007 to $167 billion in March 2009, a loss of about a third during that period. It is now around $200 billion. REUTERS/Max Whittaker   (UNITED STATES) - RTXPWOZ

How to get out of debt

Financial adviser Eric Brotman offers strategies for cutting debt from student loans and elder care -- and how to avoid money woes in the first place.  Video