Acquisition positions Grohe as market leader in South Africa

The new company, to be named Grohe Dawn WaterTech Holdings, will be owned 51% by Grohe and 49% by Dawn. The brands include Cobra, which is coming home to the Grohe Group, given that Friedrich Grohe founded both companies.

The WaterTech companies comprise:
• Cobra WaterTech
• Apex Valves South Africa
• Expiro Manufacturing
• Vaal Sanitaryware
• ISCA
• Libra Bathrooms

(Image extracted from the Grohe website)

With gross sales of around €110m, Dawn's sanitary fittings business segment grew by approximately 10% in the last financial year, with a significant sanitary fittings market share in South Africa.

Further growth

The deal offers Grohe prospects for further sustained growth in the African market. It gains production facilities in South Africa and will further expand its distribution network and business activities in neighbouring markets in the southern and eastern regions of the African continent. The partners of the new company agree that this company will become the exclusive distributor for Grohe and Joyou products in South Africa and other selected markets in sub-Saharan Africa.

"For us, acquiring this business is another major step inspired by compelling industrial logic," said David J Haines, CEO and chair of the Grohe Group. "As part of our sustainable growth strategy, we held our initial talks and negotiations with Dawn in the middle of last year with a view to expanding our activities in Africa's southern region. Dawn's position of strength in the South African market makes it the perfect partner, also for the continued expansion of the Grohe and Joyou brands. In return, the new company will benefit from our expertise in R&D and design."

Following the acquisition, the management teams in the operating companies will remain unchanged. Julian Henco, previously VP emerging markets at Grohe and Derek Tod, CEO of the Dawn Group, will lead the executive committee of the new company.