For Immediate Release
LIXIL Corporation
September 26, 2013

LIXIL Corporation to Acquire the Shares of GROHE Group- Acquisition of Europe’s leading single-brand manufacturer of premium sanitary
fittings to develop LIXIL's global operations in line with its stated strategy LIXIL Corporation (Headquarters: Tokyo, Japan; President and CEO Yoshiaki Fujimori)and the Development Bank of Japan (Headquarters: Tokyo, Japan; President and CEO ToruHashimoto) have entered into an agreement in relation to the acquisition of an 87.5% equity
interest in GROHE Group S.à r.l. from private equity funds managed by TPG Capital andDLJ Merchant Banking Partners at an implied enterprise value of EUR 3.06 bn. This is thelargest ever German investment by a Japanese company to date.
The transaction represents a significant step in the successful implementation of LIXIL'sstrategy to become the global leader in the building materials and housing equipment
industry as announced in the Company’s Medium-Term Management Vision. Thistransaction seamlessly follows the successful acquisition of American Standard Asia Pacificin 2009, Permasteelisa in Italy in 2011, and American Standard Brands in the USA this year.
“GROHE is one of the most well-known brands in the global sanitary market”, LIXIL GroupCEO Fujimori commented. “In addition to its high quality standards, GROHE has received
high acclaim globally for its leading product design and innovation across a wide range ofbathroom, shower and kitchen solutions covering the biggest share of the water technology
market. We have great respect for what CEO David Haines and his management team haveachieved. Bringing GROHE under his leadership into LIXIL Group allows us to make further
progress in building the leading platform in the global sanitary industry whilst also
strengthening our distribution network across Asia.”“For GROHE, LIXIL is a perfect match” said CEO Haines. “It is currently building a strong
track record as a global leader in the building materials and housing equipment industry. Asa growth-oriented company, LIXIL has always been the preferred partner to support us with
our growth strategy, especially in emerging markets.”

In addition to the acquisition of the GROHE shares, a voluntary offer will be launched toacquire all of the outstanding shares of Joyou AG, GROHE’s publicly listed subsidiary, ofwhich GROHE currently holds a 72.3% interest. Joyou AG designs, produces and sells
faucets and other sanitary ware products and has developed into a market leader in China
where it sells through a network of over 4,000 distributors.
Joyou AG’s founders Jianshe Cai and Jilin Cai, will remain invested in GROHE, and willcontinue to lead the business they founded in 1988. CEO Haines, who has signed a new
five-year contract will remain at the helm of GROHE Group as CEO, stated: “Our merger
with Joyou has provided us with differentiated access to China – we are now excited about
the prospect of accessing further markets through our new partners in Japan and creating abroad platform for collaboration across borders and product lines.”
LIXIL and DBJ will acquire GROHE through a jointly-owned entity of which each party will
own a 50% voting interest. CEO Fujimori said: “The joint acquisition structure enables LIXIL
to act on this strategic opportunity while maintaining a healthy balance sheet.”
The implied Enterprise Value, including the assumption of debt, is EUR 3.06 bn (JPY397.8 bn*). The transaction is subject to customary regulatory and antitrust approvals. Uponcompletion of this transaction, GROHE and Joyou AG will become an affiliated company
accounted for under the equity-method.
Through the implementation of DBJ’s VG Investment Program and utilizing its
complimentary resources such as personnel, know-how and intelligence network, in addition
to the financing support, GROHE’s competitive advantage can be further strengthened
which will enhance LIXIL’s overall corporate value. LIXIL was advised by BNP Paribas,
Moelis & Company and SMBC Nikko, Linklaters was legal advisor to the Company. GROHE
was advised by Acxit Capital, Credit Suisse, Goldman Sachs, Weil LLP and Clifford Chance.
(Note: the JPY amount is based on an exchange rate of EUR 1 = JPY 130)
■ About LIXIL
Led by President and CEO Yoshiaki Fujimori, LIXIL Group Corporation (TSE Code:5938) is a listed holding company posting ¥1.4 trillion (EUR 10.8billion) in consolidated sales
in FY2013. The Group engages in a broad spectrum of housing businesses, ranging fromthe manufacture and sale of building materials and housing equipment to the operation ofhome centers and a network of homebuilding franchises.
LIXIL Corporation is the largest housing and building materials company in Japan with avast and unique business portfolio. It is a leader in eight market categories in its homecountry, with a 55% share in exteriors, 50% share in housing sashes and doors, 50% sharein curtain walls and 40% share in sanitary wares, as well as a well-known brand in tiles,
washstand cabinet units, and bathroom and kitchen units.
Since LIXIL was formed in 2011 after having merged key Japanese players in the housingand material building industry, LIXIL has been active in strategic acquisitions andpartnerships in order to fortify and accelerate its growth in overseas markets. It currently
operates in more than 30 countries through premium brands offered over a broad productlineup and services. Permasteelisa, Gartner and Shanghai Meite, for example, spearhead
our project business (building materials and curtain walls), while LIXIL, American Standard,
INAX and TOSTEM are power players that feature an impressive brand portfolio including
kitchen units, bathroom fixtures, windows and doors.
<Corporate information>
http://www.lixil-group.co.jp/■ About GROHE GroupThe GROHE Group is one of the world’s leading providers of sanitary fittings. Under theglobal GROHE brand for sanitary products and systems, the GROHE Group sets standards
in quality, design, technology and responsibility, providing “Pure Joy of Water”. With theJOYOU brand, the Group addresses the fast growing Chinese market. Headed by GROHEGroup S.à r.l. Luxembourg, the GROHE Group has a global workforce averaging 9,000
employee. In 2012, the GROHE Group generated consolidated sales of €1,405 million; 85percent came from outside Germany. The GROHE Group has nine production plants of its
own, of which six are located outside Germany (one each in Portugal, Thailand and Canada,and three in China).
■ About Cai GmbHCai GmbH is a German company controlled by Jianshe Cai and Jilin Cai, (respectivelyCEO and COO) of Joyou, a leading faucet and sanitary ware manufacturer in China.
■ About the Development Bank of Japan
DBJ (President: Toru Hashimoto) is a financial institution that provides both loans anddirect investment and is fully capitalized by the Japanese government. It has offices invarious cities across Japan and overseas.
<Corporate information>
http://www.dbj.jp/
https://ja-jp.facebook.com/DBJ.jp