Caesarstone Ltd. (NASDAQ: CSTE), a leading developer, and manufacturer of high-quality engineered surfaces announced its entry into a definitive agreement to acquire a majority stake in Lioli Ceramica Pvt. Ltd., an India-based producer of cutting-edge porcelain countertop slabs.
Caesarstone is a concept and lifestyle-driven company with a customer-centered approach to designing, developing, and producing high-end engineered surfaces used in residential and commercial buildings. The products offer superior aesthetic appeal and perfected functionality through a distinct variety of colors, styles, textures, and finishes used in countertops, vanities, wall cladding, floors, and other interior surfaces.
Porcelain represents one of the fastest-growing categories in the global countertop market and directly complements Caesarstone’s established presence in engineered quartz surfaces. The acquisition provides an attractive entry point for Caesarstone to leverage its strong brand, design capabilities, sales force, and global distribution network to enhance customer engagement around the world with a multi-material offering of premium countertops.
Located in the center of India’s porcelain hub, Lioli’s high-quality, low-cost, vertically-integrated operation will supply porcelain countertop offerings to Caesarstone, which will be marketed in all regions alongside quartz under one leading global Caesarstone brand. 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 a majority stake in Lioli for a cash investment of approximately $12 million, representing an enterprise value of approximately $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.
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.
Courtesy: Business Wire