Gujarat-based Lioli Ceramica Pvt Ltd (LCPL) has said that it has sold its majority stake to the Israeli Caesarstone Ltd.
Under the terms of the transaction, Caesarstone has entered into a definitive agreement to acquire majority ownership in Morbi’s LCPL for a cash investment of approximately $22 million, based on the achievement of certain milestones. The deal is for approximately $12 million in cash and assumption of debt of LCPL. The purchase, representing an enterprise (total) value of $34 million, also includes a possible $10 million in additional consideration, according to Caesarstone US Exchange filings and sources.
The transaction is expected to be closed this year, subject to customary closing conditions. Pantomath Capital Advisors Pvt Ltd (PCAPL) has acted as the sole investment banker and financial & tax advisors to LCPL.
Incorporated in 2016, the $18-million Lioli manufactures ceramic countertop slabs in the mega-sized category. In 2018, it invested €30 million for a 1 million sqm Morbi plant using Italian technology from SYSTEM Ceramics, Modena and TecnoFerrari, among others. The company claims the plant can produce up to 13,000 sqm per day. The company rolls out up to 75 designs in sizes up to 3,200mm X 1,600mm (10.5 feet X 5.2 feet), and thicknesses from 4mm to 1.2cm under its TechnoSLAB brand. It exports its products to 35 countries and employs about 400 people.
Founded in 1987, NASDAQ-listed Caesarstone Ltd is regarded as an inventor and a global leader in quartz surfaces applied in kitchen countertops, bathroom vanities, and furniture for residence, office, restaurant and health care areas. Porcelain represents one of the fastest-growing categories in the global countertop market and directly complements Caesarstone’s established presence in engineered quartz surfaces.
“We are excited to join forces with Caesarstone and to be part of its global vision and growth acceleration plan. We are one of the first mega-sized porcelain countertop producers in Asia with a state-of-the-art technologically advanced manufacturing facility. Our diversified premium products are geared to cater to Caesarstone’s global network to further enhance customer experiences,” the company’s CEO Hitesh Deteroja (left in photo) has said.
Added the company’s director Milan Gadara: “Our state-of-the-art manufacturing facility is a matter of pride for the entire industry. We are committed to adopting a global standard backed by the highest code of business conduct.”
“This acquisition is a major step in our efforts to advance our global growth acceleration plan and to realise 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,” Caesarstone Ltd’s CEO Yuval Dagim (right in photo) has said. “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 realising our mission to be the first brand of choice for countertops around the world,” he added.
“Caesarstone-Lioli transaction is the first such cross border strategic transaction in building construction materials industry post-Covid-19 break-out and we do believe that it would be a significant boost to ‘Make in India’. Lioli getting FDI is a milestone not only for Lioli but for the entire industry and we believe that this landmark deal would open up the sector and help Indian manufacturers go global, expand output, and boost employment” PCAPL’s Co-founder Madhu Lunawat said.
