RAK Ceramics has announced the acquisition of bathroom and kitchen tap and showering systems manufacturer, Kludi Group. Nearly 100-years old, Kludi Group has a manufacturing footprint across Germany, Austria, Hungary and the UAE, which incorporates innovative German-engineering technologies. Kludi Group’s total revenues amount to around €120 million, with sales across Europe, Asia, and the Middle East.
In 2007, RAK Ceramics entered into a joint venture with Kludi Group, to establish the brand KLUDI RAK, for the production and sale of fittings in the Middle East. Over the years, RAK Ceramics says this partnership has grown and proved to be successful and profitable, recording impressive growth and sustainable margins solidifying as such the company’s foundation to endure recent challenging market conditions.
The 'strategic acquisition' of Kludi Group represents an opportunity for RAK Ceramics to strengthen its growing existing core businesses across German and European markets; the brand is also anticipated to complete RAK Ceramics suite of products and grow its offering to include taps and faucets, strengthening as such KLUDI brand exposure in RAK Ceramics core markets. The transaction is expected to realise operational manufacturing synergies, leveraging both companies’ plants presence across Europe, the UAE and Asia.
Abdallah Massaad, group CEO, RAK Ceramics, said: "This acquisition of Kludi Group aligns to our growth strategy and commitment to strengthen our presence in core markets and focus on core products. It provides RAK Ceramics with the opportunity to spearhead our expansion into European markets and enhances our positioning in projects across the sanitaryware and faucets business. The acquisition, built on a long-standing partnership and a shared vision, opens up new opportunities for Kludi Group as we aim to develop this historic and established European faucet brand further by funding its strategy and driving forward modernisation and digitalisation of the brand. This will also provide an opportunity for Kludi Group to leverage on RAK Ceramics network to push further faucets value.”
Pictured: Abdallah Massaad, group chief executive of RAK Ceramics, left, with Julian Henco, group chief executive of Kludi Group.
