Sun Capital exits US-based ASB to Japan's Lixil

On completion of deal, which still requires regulatory approval, American Standard will remain headquartered in the US, and continue to operate all its existing facilities.

The company was sold to a Bain Capital for $1.76 billion in 2007 and PE firm subsequently offloaded the North American part of the business to Sun Capital for about $130 million. When Sun Capital acquired the asset it had been losing money as a result of a slump in the US housing market and heavy competition from Chinese imports.

Meanwhile, American Standard's Asian unit meanwhile was sold to Lixil, then known as JS Group, but the European and Latin American operations, known as Ideal Standard, were retained. 

"The market leadership that American Standard enjoys today has been fueled by considerable operational improvements, an expanded product platform achieved through four strategic acquisitions, and a commitment to innovation," Marc Leder, co-CEO at Sun Capital, in a statement.

Now Lixil is in a position to profit from a rebound of the US housing market.

The acquisition also places the Japanese company in the top ranks of global toilet makers, which include Toto of Japan, Spain's Roca Sanitario and US-based Kohler. Lixil is targeting sales revenues of JPY1 trillion from its international business, with a view to it accounting for 30% of group revenue.

"American Standard will serve as a key platform for Lixil as we continue to fulfill our ambitions to become a worldwide leader in the building materials and housing equipment market," said Yoshiaki Fujimori, President of LIXIL Corporation.

"Lixil already owns the American Standard brand in the Asia Pacific market, and this transaction will strengthen the brand and the company's considerable manufacturing capabilities and technological best practices."

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• Topics
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