By Staff writer
Company says it has sold 51% stake in RAK Laticrete to US-based partner for $13m
RAK Ceramics, a UAE-based provider of lifestyle ceramics solutions, has announced that it has completed the sale of its 51 percent share in RAK Laticrete to Laticrete International for AED48.1 million ($13 million).
The transaction also includes the distribution of dividends for an additional amount of AED8.6 million. Total gross proceeds from the sale transaction will be AED56.7 million.
The proceeds will be used to expand high margin sanitaryware operations in RAK Ceramics’ focus markets of the UAE, India and Bangladesh, a statement said.
In 2003, RAK Laticrete, a joint venture between RAK Ceramics and US based Laticrete International, was formed to manufacture tiling installation systems and waterproofing products.
RAK Ceramics said it will see a AED37.6 million gain on the sale of this joint venture.
Abdallah Massaad, RAK Ceramics CEO, said: "We had a highly successful partnership and we believe that both companies are currently in a win-win situation. RAK Ceramics for receiving a premium on the sale transaction and Laticrete International for buying a valuable company that has been a success story in the industry over the last 12 years."
Erno de Bruijn, president, international division of Laticrete, added: "We made the strategic decision to extend the scope of our activities beyond the world of ceramic tiles and stone. Through acquisitions and organic growth, Laticrete has experienced tremendous international expansion and we are confident that by focusing on new product offerings and enhancing our operations in the Middle East, we will continue to grow."