Japan's Lixil Corp acquires 70% stake in Star Alubuild from DLF
09 October 2013
Japan's biggest building products company Lixil Corp, yesterday announced that it has acquired a controlling 70 per cent stake in Star Alubuild Pvt Ltd, from subsidiaries of DLF, India's largest real estate company and Romi Malhotra, the founder of the Delhi-based company.
Lixil, which last month agreed to pay $4.1 billion for acquiring German sanitary fittings maker Grohe AG (See: Europe's largest sanitaryware maker Grohe to be sold to Japan's Lixil for $4-bn), did not reveal the financial terms of the deal, but said that the acquisition values Star Alubuild at Rs79.8 crore.
Star Alubuild is a leading Indian curtain wall company, executing projects all over India. It specialises in the designing, engineering, fabrication and installation of curtain walls for commercial buildings, retail malls and doors & windows for projects throughout India.
Since 2003, the company has been involved in projects in Delhi, Mumbai, Chennai and other metro cities, creating a high quality customer base which includes DLF, IREO, Oberoi and Larsen & Toubro, among others.
Star Alubuild has a 150, 000-square-feet fabrication facility in Gurgaon and an additional undeveloped 2.4 acres of land in Chennai as a hub for southern expansion.
DLF, after providing anchor support to Star Alubuild in its initial growth phase, has decided to exit its investment in Star Alubuild as part of its plan to sell non-core assets in order to reduce debt.
''We have had a very fruitful relationship with Star Alubuild and wish the company the very best for its next phase of growth. A global player like Lixil acquiring a controlling stake in Star Alubuild demonstrates the confidence in the Indian real estate sector and ancillary industry. We would be delighted to continue our business relationship with Star Alubuild under its new ownership,'' said, Saurabh Chawla, executive director at DLF.
Lixil is Japan's largest manufacturer of building materials and housing equipment with net sales of €10.8 billion in fiscal year 2013.
In June this year, it acquired toilet and plumbing facilities maker ASD Americas Holding Corp from an affiliate of private equity firm Sun Capital Partners, for $542 million (See: Japan's Lixil Corp to buy ASD Americas Holding for $542 mn).
Its portfolio includes solutions in housing and lifestyle and an extensive product lineup from windows, tiles, front doors, kitchens, bathrooms, and toilets under the brand name of American Standard, Inax and Tostem.
In the global market, its operations are led by group companies, such as Permasteelisa Group, which has strong presence in the curtain wall business with unmatched technology and designs.