LIXIL and GROHE Group to Jointly Acquire Stake in Watertech and Sanitaryware Clusters in DAWN Ltd.

  LIXIL and GROHE Group to Jointly Acquire Stake in Watertech and Sanitaryware
  Clusters in DAWN Ltd.

- LIXIL to become one of South Africa’s leading suppliers of sanitary fittings

Business Wire

TOKYO -- July 2, 2014

LIXIL Corporation (Headquarters: Chiyoda-ku, Tokyo; President: Yoshiaki
Fujimori), a global leader in the housing products and building materials
industry, and GROHE Group S.à r.l. (Headquarters: Luxembourg; CEO and
Chairman: David Haines), LIXIL-affiliate company, today announced that they
had agreed to acquire, via a newly established joint venture, 51% of the
shares of watertech and sanitaryware clusters of Distribution & Warehousing
Network Limited (Headquarters: Johannesburg, South Africa; President: Derek
Tod; hereinafter “DAWN”). The acquisition based on this agreement is expected
to be completed in autumn 2014.

DAWN’s watertech and sanitaryware clusters have annual gross sales of about
110 million euros (about 15.4 billion JPY, 1 euro =140 JPY) attaining a growth
rate of about 10% last fiscal year, and it holds a major share of South
Africa’s watertech and sanitaryware market.

The joint venture agreement will make LIXIL one of the leading suppliers of
sanitary fittings in South Africa. GROHE gains production facilities in South
Africa and will further expand its distribution network and strengthen
business activities in Africa.

Yoshiaki Fujimori, President and CEO of LIXIL, 43.75% owner of GROHE said
"Expansion in emerging markets, especially Africa, is consistent with the
strategy of LIXIL Group".

The LIXIL Group declared its goal of “becoming a comprehensive housing
solutions provider targeting the global market” in its Medium-term Management
Vision announced in May 2011, and it has been expanding its business to
achieve growth and expansion on a global scale. This transaction opens the way
for GROHE to successfully continue its long-term growth strategy with partner
LIXIL at its side.

About Distribution & Warehousing Network Limited

DAWN is listed in Johannesburg Stock Exchange (JSE). The Group manufactures
and distributes quality branded hardware, sanitaryware, plumbing, kitchen,
engineering and civil products through a national, strategically positioned
branch network in South Africa, as well as in selected countries in the rest
of Africa and Mauritius. The brands acquired through the new agreement include
COBRA, ISCA, VAAL, LIBRA and PLEXICOR. For more information, please visit:

About GROHE Group S.à r.l.

GROHE is one of the world’s leading providers of sanitary fittings operating
over 130 countries. Under the global GROHE brand for sanitary products and
systems, GROHE sets a high standard in quality, design, technology and
responsibility, providing water to perfection. With the Joyou brand, the GROHE
Group covers the fast growing Chinese market. Staffed by about 9,300
employees, it offers brands differing by price range and design: GROHE®, GROHE
Professional®, GROHE SPA®, and Joyou®. Both companies became equity method
affiliate companies of the LIXIL Group as a result of the January 2014 joint
acquisition of 87.5% of GROHE’s shares by the LIXIL Group and the Development
Bank of Japan.

For more information, please visit:

About LIXIL Corporation

Led by President and CEO Yoshiaki Fujimori, LIXIL Group Corporation (TSE Code:
5938) is a listed holding company posting 1.6 trillion JPY in consolidated
sales in FY March 2014. The Group is involved in a broad spectrum of
housing-related businesses, ranging from the manufacture and sales of building
materials and housing equipment to the operation of home centers and a network
of homebuilding franchises.

LIXIL Corporation, a consortium of building material companies, is a core
enterprise of the Group, generating 80% of consolidated sales. The largest
housing and building materials company in Japan with a vast and unique
business portfolio, a 55% share in exteriors, 50% share in housing sashes and
doors, 50% share in building sashes and shutters and 40% share in sanitary
ware. LIXIL is also a leading brand such as in tiles, unit bathrooms and
kitchen systems.

Launched in April 2011 under its present structure and name, LIXIL has been
active in strategic acquisitions and partnerships in order to fortify and
accelerate its growth globally. It currently operates in more than 30
countries through various brands offering a broad lineup of products and
services. Permasteelisa, Gartner and Shanghai Meite, for example, spearhead
our project business (building materials and curtain wall), while LIXIL,
American Standard, Inax and Tostem brands provide an impressive product
portfolio including kitchen units, bathroom fixtures, windows and doors.

For more information about LIXIL Group, please visit:


Media Contact
LIXIL Group Corporation
Miyuki Otomo, +81 3 6268 8801
Corporate Communication Division
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