Transaction Enables LIXIL To Further Focus On Its Core Water And Housing Technology Businesses
LIXIL Group Corporation, maker of pioneering water and housing products, announced it has entered into a definitive agreement to sell Permasteelisa S.p.A (“Permasteelisa”) to Atlas Holdings LLC (“Atlas”).
Atlas and its affiliates own and operate a diversified group of global manufacturing, distribution and construction businesses with a unique emphasis on safety and operational improvement. The transaction is subject to customary closing conditions and regulatory approvals. Permasteelisa is a leading global contractor in the engineering, project management, manufacturing, and installation and after-sales services of advanced building facades, architectural envelopes and interiors. The company has brought to life some of the most iconic buildings defining city skylines today, from the Shard in London to Apple’s HQ campus in Cupertino, the World Trade Center redevelopment in New York, where the group worked on 1WTC, 3WTC and 7WTC, through to the World Financial Center in Shanghai and the International Commerce Center in Hong Kong. Operating out of its group headquarters in Vittorio Veneto in Italy, the company has worked with architects around the world on over 3,500 projects to date. “We are pleased to have reached an agreement that will allow Permasteelisa, a world-class brand in the area of highly specialized curtain walls, to become part of the Atlas family of global businesses. We believe Atlas is the ideal owner for Permasteelisa, as they bring a strong record of delivering the human and financial capital necessary to strengthen businesses for the longterm,” said Kinya Seto, CEO of LIXIL Group. “For LIXIL, the agreement enables us to reduce our risk exposure in noncore areas of operation and represents a new chapter in our transfor mation as we focus on strengthening our water and housing technology businesses and seek to invest more resources in these high growth areas,” Seto said. The transaction is in line with LIXIL Group’s ongoing efforts to simplify its business structure and focus on its core businesses, enabling further synergies and efficiencies through enhanced integration. As Permasteelisa’s operations are significantly different to those of LIXIL Group’s core business operations in terms of business cycles and other factors, the sale will also enable LIXIL Group to simplify and eliminate ongoing exposure to different types of risks. This transaction is also expected to strengthen the company’s balance sheet as well as financial strength by generating cash, reducing debt, and improving working capital efficiency, enabling LIXIL Group to further invest in new and profitable growth areas across its core businesses as it strives to make better homes a reality for everyone, everywhere. “We are excited to have reached an agreement to acquire Permasteelisa, as we believe the company has a solid foundation in place for success, particularly as a focused, standalone business that is well capitalized,” said Timothy J Fazio, co-founder and managing partner of Atlas. “The company has a strong management team led by Klaus Lother, and a skilled workforce. When coupled with our expertise in the building materials and commercial construction markets and our attention to client satisfaction, innovation and operational improvements, we will build an even stronger company in the months and years ahead,” Fazio added. Permasteelisa Group CEO, Klaus Lother, said, “Permasteelisa drives innovation in the curtain wall sector by integrating design, engineering, manufacturing capabilities and project management to achieve works of excellence worldwide. Under LIXIL’s guidance and with the consolidation of our leadership role, we were able to respond to significant challenges in an increasingly complex and competitive landscape. We are now entering a new phase of our evolution. We thank LIXIL for its full and constant support and are confident that with the ownership and support of Atlas Holdings, we will continue our evolution whilst generating value within the construction sector.” Permasteelisa will be classified as discontinued operations in LIXIL Group’s financial reports. In addition, contingent liability is expected to decrease by approximately 150 billion yen, which is expected to have a positive impact on fund raising costs, etc. As a result of this transaction and other factors, LIXIL Group has also announced a revision to its full year financial forecast. Full details can be found in the timely disclosure, “Announcement Regarding Revision of the Forecast of Business Performance For the Fiscal Year.
Ended March 2020 (Consolidation) and Recording of Extraordinary Loss from a Subsidiary in Japan.” About LIXIL LIXIL makes pioneering water and housing products that solve everyday real-life challenges, making better homes a reality for everyone, everywhere through meaningful design, entrepreneurial spirit, dedication to improving accessibility for all and responsible business growth. About Atlas Holdings LLC Headquartered in Greenwich, Connecticut and founded in 2002, Atlas and its affiliates own and operate 20 platform companies which employ approximately 20,000 associates at more than 150 facilities worldwide. Atlas operates in sectors such as aluminum processing, automotive, building materials, capital equipment, construction services, food manufacturing and distribution, packaging, paper, power generation, pulp, supply chain management and wood products. For more information, please visit www.atlasholdingsllc.com.
About Permasteelisa Group
The Permasteelisa Group operates worldwide in the design, production and installation of architectural enclosures, curtain walls and interior systems, placing itself in a position of absolute leadership in the global reference market. In all of its projects the group contributes with its knowhow and its experience, especially for the “Special Features Buildings”, from the design phase to the successful completion, reaching the architectural expectations of its customers.