Villeroy & Boch AG signs binding agreements to acquire operating companies within the Ideal Standard Group, Invest-Gate reports.

Considering their regional presence, sales strategies, and product and brand portfolios, the strategic fit between the two companies lays the groundwork for a stronger market position and future growth. Upon completion of the transaction, the integrated company will join the ranks of Europe’s largest manufacturers of bathroom products, operating in an industry with substantial global growth potential.

The merger is expected to significantly impact the revenue of Villeroy & Boch’s Bathroom & Wellness Division, including the Dining & Lifestyle business, effectively doubling its size.

For his part, Frank Göring, CEO of Villeroy & Boch, explains, “This merger means that we will now catch up with the largest players on the European market in the bathroom sector in terms of turnover. Our complementary strengths make us more competitive and significantly improve our starting position for additional growth.”

Combining Villeroy & Boch and Ideal Standard will create a powerful synergy, leveraging their established brands and sales strategies. Villeroy & Boch has a strong presence in Central and Northern Europe and Asia. Ideal Standard has gained an excellent reputation for its brand portfolio, particularly in the UK, Italy, and the Middle East/North Africa region. Villeroy & Boch focuses primarily on a high-end private customer base.

Moreover, Ideal Standard specializes in the project business, serving the public sector, healthcare sector, and developers of large residential, hotel, and commercial properties. In addition to a wide range of ceramic bathroom ware and other products, Ideal Standard brings an established fittings business, which accounted for over a third of its revenue last year.

Jan Peter Tewes, CEO of Ideal Standard, emphasizes the complementarity of Villeroy & Boch and Ideal Standard regarding products and brands. He expects both companies to play a significant role in shaping the industry’s future and looks forward to this development.

Frank Göring, CEO of Villeroy & Boch, highlights the cultural similarities between the two companies, characterized by strong brands rooted in tradition and shared values. These values include a strong focus on service, a passion for good design, and a commitment to innovation.

“The bathrooms sector remains a fast-moving global growth market, but it is a market in which scale effects will be increasingly important to remaining competitive and attracting future investment,” Göring added, underscoring the significance of scale in the industry and the need to adapt to maintain a competitive edge and attract further investments.

Notably, this merger not only elevates Villeroy & Boch’s bathrooms business to a new level in terms of volume but also provides access to significant additional growth potential. Ideal Standard’s manufacturing expertise in the fittings business and strong market positions in the UK, Middle East/North Africa, and Italy will enhance Villeroy & Boch’s market penetration and coverage in specific regions and product segments.