Italtile Plans to Buy Ceramic Industries in $259 Million Dealby
Italtile Ltd. plans to buy the 75 percent stake that it doesn’t own in Ceramic Industries (Pty) Ltd. for about 3.75 billion ($259 million), a deal that the South African tile and bathroom-furniture retailer will fund with cash and proceeds of a stock sale.
Italtile will sell 105 million shares at 11.57 rand each in an offer to existing shareholders to raise about 1.2 billion rand, the Johannesburg-based company said in a statement Tuesday. Italtile is the largest client of Ceramic Industries, a tile and sanitaryware manufacturer.
The companies are highly reliant on each other as clients, which “has been highlighted as a significant risk,” said Italtile, whose competitors include Iliad Africa Ltd., which Steinhoff International Ltd. purchased last year.