TOKYO/NEW YORK, June 28 Japan's biggest building
products maker Lixil Group Corp said on Friday it would
buy toilet and plumbing facilities maker ASD Americas Holding
Corp (American Standard) for $542 million from buyout firm Sun
Capital Partners Inc.
Lixil, a Tokyo-based housing facilities manufacturer which
was looking to enter the North American market, said it would
keep American Standard headquartered in the United States and
continue operating all of its existing facilities.
Sun Capital acquired American Standard in 2007 from private
equity peer Bain Capital LLC for $130 million. Bain had just
agreed to purchase bathroom fixture maker Ideal Standard with a
$1.76 billion bid, prevailing over a competing bid from the
private equity arm of Steve Cohen's SAC Capital.
"In terms of the money invested just in American Standard,
based on the great job its CEO Jay Gould and hid team did, we
are going to make about three times our money on one of our
biggest investments ever," said Sun Capital co-chief executive
"Most of our equity investments are below $100 million, we
have only made around a dozen investments in our history of more
than $100 million and this is one of them."
Sun Capital helped American Standard return to profitability
after its takeover, subsequently merging it with three of its
companies -- Crane Plumbing, Eljer and Decorative Panels
International -- and acquiring another company as well, Safety
Tubs LLC, as a bolt-on.