MILAN, Aug. 23, 2017 /PRNewswire/ -- Grandland Holdings Group (hereafter "Grandland"), China's leading company in interior decoration and construction industry today announced that it decided to acquire 100% of the shares of Permasteelisa S.p.A, the global leader of curtain wall manufacturing domain from LIXIL Corporation ("LIXIL"), a global leader in housing and building products and materials based in Japan.
Grandland will pay an acquisition price of EUR 467 million with the strong commitment from Chinese state banks, and Grandland has secured additional funding to support the future financing requirements of Permasteelisa. The transaction is subject to customary closing conditions and regulatory approvals including in China, the United States and Russia.
Signing Ceremony in Permasteelisa Group headquarter, Vittorio Veneto
On completion, Permasteelisa will maintain its independence in operational terms. The current management team, which is led by CEO Riccardo Mollo, will remain to pursue the long-term growth of Permasteelisa with Grandland's strong support and backing.
This transition is expected to be a win-win business for all parties involved. The strong alliance between Grandland and Permasteelisa, two giants in the construction domain, is highly anticipated to yield global synergistic effects and drive potential market development.
According to the President of Grandland Yi Zhang, the alliance is highly aligned with Grandland's business strategy, aiming at complementary skills combined by both companies and bringing significant business growth from overseas markets. Permasteelisa, as the worldwide leading Contractor in the engineering, project management, manufacturing and installation of architectural envelopes and interior systems, enjoys a history of shaping the most iconic skylines and cityscapes around the world, with projects including Apple's New HQ Campus, the Sydney Opera House, the International Commerce Centre in Hong Kong, and the Shanghai World Financial Center. Permasteelisa is also the market leader in USA and Europe, with business across EMEA, North and South America, Australia and Asia. For Grandland, the strategic alliance will bring various benefits, helping it gain distinguishing advantages in fierce market competition, completing current industry chain, improving the service quality in the curtain wall industry, diversifying customer mix, and expanding market share especially in the global market.
For Permasteelisa, being part of Grandland, the undisputed leader in interior decoration and construction industry in China, the alliance is likely to pave the way for improving its presence, worldwide and in the Chinese market. There is unprecedented market potential of curtain wall business in China: by joining the Grandland group, Permasteelisa will gain synergies in technology, talents, finance as well as Chinese market share, which will be greatly contributing to Permasteelisa becoming the unshakeable global leader of curtain wall industry in all markets.
Besides, for external opportunities, under the "Belt and Road Initiative" of China and relying on the good bilateral relations between China and Italy, Grandland will closely collaborate with Permasteelisa to lead the overall interior decoration and construction industry go further on internationalization, continually tap the tremendous market potential from "The Belt and Road" countries en route. Leveraging their respective superior capabilities in design, technology, reputation and talent management, Grandland and Permasteelisa will jointly pursue the construction market of the ""The Belt and Road" Countries, providing one-stop solutions and improving market penetration.
Acquisition summary
A1 Capital and China International Capital Corporation (CICC) are serving as Grandland's financial advisors, Chiomenti and King & Wood Mallesons (KWM) are serving as its legal counsel, and Deloitte provided due diligence services for this transaction.
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