Caesarstone Enters Global Porcelain Countertop Market Through Majority Ownership Acquisition of Lioli Ceramica
Caesarstone Ltd. announced today entering a transaction for the acquisition of majority ownership in Lioli Ceramica Pvt. Ltd. By entering the global porcelain category, Caesarstone achieves a significant milestone in its Global Growth Acceleration Plan.
Lioli Ceramica Pvt. Ltd, an India-based producer of cutting-edge porcelain countertop slabs, operating one of the most innovative and technologically advanced manufacturing facilities. With annual revenues of approximately $ 18 million, Lioli Ceramica is an ideal strategic partner to realize Caesarstone's growth strategy .
Caesarstone has set a strategic mission to become the brand of choice in countertops through a key focus of product portfolio expansion in new materials. Porcelain represents one of the fastest growing categories in the global countertop market, hence Caesarstone’s entrance into the porcelain countertop market is accentuated by its dominant presence in quartz surfaces and strengthens its global competitive advantage.
The company believes that through this acquisition, an opportunity exists to leverage the strength of the Caesarstone® brand, extensive global distribution network and award-winning designs. All this combined with Lioli’s advanced production technology, will further enhance Caesarstone’s premium countertop offering to its customers and consumers worldwide .
Yuval Dagim, Chief Executive Officer commented, “This acquisition is a major step in our efforts to advance our global growth acceleration plan and to realize our goal of becoming a leading premium, multi-material player in the global countertop industry. The acquisition will enable us to have a significant presence in the global porcelain category, one of the fast-growing categories in the countertop market, alongside our reputable quartz portfolio. Lioli’s state-of-the-art porcelain operations combined with Caesarstone’s highly valued brand and established global network will strengthen our unique value proposition and our ability to accelerate a multi-material growth strategy. In this way, we can enhance the experience of our consumers and business partners, while realizing our mission to be the first brand of choice for countertops around the world.”
Under the terms of the transaction, Caesarstone has entered into a definitive agreement to acquire majority ownership in Lioli for a cash investment of $12 million, representing an enterprise value of $34 million, including the assumption of debt and additional consideration of up to approximately $10 million upon the achievement of certain milestones. The transaction is expected to close in 2020, subject to customary closing conditions, and is expected to have a favorable impact to earnings beyond 2020.
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