Israeli engineered quartz surface countertop company Caesarstone Ltd. (Nasdaq: CSTE) today announced that it has entered into a definitive agreement to acquire a majority stake in Lioli Ceramica Pvt. Ltd., an India-based producer of cutting-edge porcelain countertop slabs. Lioli has annual revenue of $18 million.
Under the terms of deal, Caesarstone will pay $12 million cash for a majority stake in Lioli, representing an enterprise value of $34 million, including the assumption of debt and additional consideration of up to $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.
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. Caesarstone CEO Yuval Dagim said "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."
Published by Globes, Israel business news - en.globes.co.il - on August 31, 2020 © Copyright of Globes Publisher Itonut (1983) Ltd. 2020