Linklaters, Weil on $4 Billion Grohe Acquisition
Linklaters is advising Japanese housing and building materials company Lixil Corp. and the Development Bank of Japan on their proposed $4.1 billion acquisition of German bathroom fixture maker Grohe Group.
The buyers will purchase 87.5 percent of Grohe from private equity firms TPG Capital and DLJ Merchant Banking Partners, an affiliate of Credit Suisse Group AG. Lixil and the Development Bank will control Grohe through a 50-50 joint venture.
The purchase will be followed by a voluntary offer for Joyou AG, a publicly traded subsidiary of Grohe that makes faucets and other related products in China. Grohe owns about 72 percent of Joyou.
The deal, subject to regulatory approvals, is expected to close in early 2014.
Lixil, which acquired plumbing fixture maker American Standard in August around $542 million, has embarked on a global expansion drive in recent years. In 2011, it bought Italian curtain wall maker Permasteelisa S.p.A. for around $800 million.
Linklaters London partner David Holdsworth, Dusseldorf partner Klaus Marinus Hoenig, and Tokyo partner Hiroya Yamazaki acted for Lixil and Development Bank.
Weil, Gotshal & Manges Frankfurt partner Gerhard Schmidt led a 20-lawyer team advising Grohe, TPG, and DLJ that also included Frankfurt partners Heiner Drüke, Stephan Grauke, and Jürgen Börst, as well as Munich partners Tobias Geerling, Thomas Schmid, and Barbara Jagersberger, Clifford Chance Germany managing partner Andreas Dietzel and partner Markus Pfüller, both based in Frankfurt, are also acting for the sellers.*
*Updated, 9/27/13: This story has been updated to include the role of the Clifford Chance partners advising Grohe on this transaction.