Caesarstone Enters Global Porcelain Countertop Market Through Majority Stake Acquisition of Lioli Ceramica
August 31 2020 - 7:00AM
Business Wire
- Establishes Position as Leading Premium,
Multi-Material Countertop Company -
Caesarstone Ltd. (NASDAQ: CSTE), a leading developer and
manufacturer of high-quality engineered surfaces, today announced
that it has entered into a definitive agreement to acquire a
majority stake in Lioli Ceramica Pvt. Ltd (“Lioli”), an India-based
producer of cutting-edge porcelain countertop slabs, operating
innovative and technologically advanced manufacturing facilities in
Asia, with annual revenue of approximately $18 million.
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.
Yuval Dagim, Chief Executive Officer commented, “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.”
Under the terms of the transaction, Caesarstone has entered into
a definitive agreement to acquire a majority stake in Lioli for a
cash investment of approximately $12 million, representing an
enterprise value of approximately $34 million, including the
assumption of debt and additional consideration of up to
approximately $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.
About Caesarstone
Caesarstone is a concept and lifestyle-driven company with a
customer-centered approach to designing, developing, and producing
high-end engineered surfaces used in residential and commercial
buildings. Our products offer superior aesthetic appeal and
perfected functionality through a distinct variety of colors,
styles, textures, and finishes used in countertops, vanities, wall
cladding, floors, and other interior surfaces. Marked by their
inherent longevity characteristics such as non-porousness, scratch
and stain resistance, and durability, the company’s product
umbrella offers a highly desirable alternative to other surfaces.
Strong commitment to service has fostered growing customer loyalty
in over 50 countries where the five distinct Caesarstone product
collections are available: Classico, Supernatural, Metropolitan,
Concetto and Outdoor. For more information please visit our
website: www.caesarstone.com.
Forward-Looking Statements
Information provided in this press release may contain
statements relating to current expectations, estimates, forecasts
and projections about future events that are "forward-looking
statements" as defined in the Private Securities Litigation Reform
Act of 1995. These forward-looking statements relate to the
Company's plans, objectives and expectations for future operations,
including estimations relating to the impact of the COVID-19
pandemic and mitigation measures in connection thereto,
expectations of the results of the Company’s business optimization
initiative and its projected results of operations. These
forward-looking statements are based upon management's current
estimates and projections of future results or trends. Actual
results may differ materially from those projected as a result of
certain risks and uncertainties, both known or unknown. These
factors include, but are not limited to: the impact of the COVID-19
pandemic on end-consumers, the global economy and the Company’s
business and results of operations; the ability of the company to
realign aspects of its business based on the business optimization
initiative, the strength of the home renovation and construction
sectors; intense competitive pressures; the outcome of silicosis
and other bodily injury claims; regulatory requirements relating to
hazards associated with exposure to silica dust; manufacturing of
existing products and managing required changes in production and
supply chain; economic conditions within any of our key existing
markets changes in raw material prices; fluctuations in currency
exchange rates; the success of our expansion efforts in the United
States; unpredictability of seasonal fluctuations in revenues;
disturbances to the Company’s operations or the operations of its
suppliers, distributors, customers or other third parties and other
factors discussed under the heading "Risk Factors" in our most
recent annual report on Form 20-F and other documents filed with
the Securities and Exchange Commission. These forward-looking
statements are made only as of the date hereof, and the Company
undertakes no obligation to update or revise the forward-looking
statements, whether as a result of new information, future events
or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20200831005041/en/
Investor Relations Contact: ICR, Inc. - Rodny Nacier
CSTE@icrinc.com +1 (646) 277-1237
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