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[May 2009]
INAX Corp to Acquire American Standard Asia Pacific Division From ISI
The INAX board of directors has resolved to acquire shares of the operating companies of American Standard's Asia Pacific Division from Ideal Standard International Holding SARL and entered into an agreement to acquire intellectual property rights and stocks of eight companies that manage the Asian business.
With this acquisition, INAX will acquire operations in nine countries: China, Thailand, South Korea, Indonesia, the Philippines, Vietnam, Singapore, India and Australia. INAX will use the distribution routes of the American Standard brand and brand recognition to promote its global strategies by further expanding its sanitary fixture business in the Asia-Pacific region.
INAX said that one of its major management targets was to expand overseas businesses especially in the Asian region where the economy is growing. The company has been putting in efforts to expand both production and sales within the area and came to consider this move in order to further expand its business in the region.
The content of the acquired business is the manufacturing and sales of sanitary fixture business under the key brand of 'American Standard.' China, Thailand and Korea are the major operating countries and it has high market share in various Asian countries with steady sales growth.
INAX decided to proceed since it could gain a strong sales network in the Asian region, increase production power along with the use of existing production sites of its own in supply wise as well as expect a number of synergy effects, including selling their own products effectively throughout the areas by using the sales route of the acquired business.
The manufacturing side of the acquisition comprises four factories in China, three in Thailand, and one each in South Korea, Indonesia and Vietnam. In addition to this, there are also sales bases in nine countries.
The total acquisition price of the eight companies' stocks, owned partnership and intellectual property rights of the Business that ISI directly or indirectly holds, will be decided with €112 million as a base price adjusted by the amounts corresponding to the net interest-bearing debts and working capital of each company as of the share delivery due date.
ENDS