Date: 21 August 2017
- Agreement creates global player of unprecedented scale and depth: both companies to benefit from complementary strengths
- Permasteelisa will operate as separate entity focusing on avant-garde architectures and top end, high-quality projects
- Current management will expand and extend its reach from historical headquarters in Italy
Worldwide leading contractor in engineering, project management, manufacturing and installation of architectural envelopes and interior systems, Permasteelisa Group, will join forces with Grandland Group – a fast growing, Shenzhen-based specialist in design and construction of architectural decoration.
The strategic alliance will create the biggest, most comprehensive curtain wall player in the world, with exceptional potential for further growth for both companies. Permasteelisa will remain fully committed to build avant-garde architectures and top end, high-quality projects which have become its trademark.
The news comes today after LIXIL Group Corporation (LIXIL Group) (TOKYO: 5938) – a global leader in the housing and building industry – announced that it has decided to sell 100% of shares of Permasteelisa S.p.A., held by its major subsidiary LIXIL Corporation, to Grandland Holdings Group Limited (Grandland) for a base sale price of EUR 467 million.
The transaction is subject to customary closing conditions and regulatory approvals including in China, the United States and Russia.
Permasteelisa will be managed as a separate business entity and its independence will be guaranteed by the new shareholder. Permasteelisa’s headquarters will continue to be based in Vittorio Veneto, Italy, where they have been since the incorporation of the company.
Known for its iconic, special features buildings, such as the Shard in London, the Apple Park, Apple’s new HQs in Cupertino, the Sydney Opera House and the International Commerce Centre in Hong Kong, Permasteelisa works worldwide to turn the visions of the best architects into reality, and has a history full of symbolic buildings that have changed the skylines around the world.
Permasteelisa Group has an annual turnover of approximately € 1.4 billion.
“Combining Permasteelisa’s position as a premium leader in the market and its scale across EMEA, North and South America as well as parts of Asia, along with Grandland’s industrial integration capabilities and strength in China, will create an even a bigger player in the curtain wall segment globally,” states Riccardo Mollo, Chief Executive Officer of Permasteelisa Group. “While Permasteelisa will maintain its operating independence, the opportunities for operating synergies with Grandland are tremendous.”
As part of the agreement, Mr. Mollo has been confirmed by the new shareholder in his role as CEO, and the rest of the top management have also been confirmed to retain their positions. These decisions allow Permasteelisa Group to spearhead future growth by reinforcing the passion for quality which has always been the distinctive trademark of the company.
Grandland is a high-quality, service-oriented architectural decoration enterprise that ranks #1 in South China, thanks to a fast-growing business portfolio.
Based in Shenzhen, it generated sales of RMB 10.86 billion in 2016 and ranks among the top 500 Chinese brands under the architectural decoration category that influence the world.
The company has recognized the superior reputation of Permasteelisa in setting the standard for the curtain wall industry due to its vision and commitment to state-of-the-art and high-tech products. The operations and footprints of both companies are complementary:
- The transaction will allow Grandland to differentiate its offering in the crowded and competitive curtain wall market, by leveraging Permasteelisa’s world-wide positioning as a premium market leader with a history of shaping some of the world’s most iconic skylines;
- Synergies with Grandland will create unique potential for Permasteelisa to better serve the entire Asian region;
- Grandland’s focus on the interior business will complement Permasteelisa offering in the niche.
“I am pleased that Grandland has acknowledged and embraced our business strategy. Upon completion of the transaction, we expect Permasteelisa to complete its ongoing turnaround process, while the journey to increased levels of solidity will continue,” Mr Mollo added. “We are also grateful to LIXIL for their support throughout the years and the way they handled the transition.”