The Wall Street Journal
Though Japan’s economic might has faded, the country continues to enhance its status as a powerhouse in one realm: toilets.
Japan’s Lixil Corp. said on Friday it agreed to pay about $342 million for American Standard Brands, a 138-year-old U.S. maker of toilets and bathroom and kitchen fixtures. The purchase from Sun Capital Partners Inc., Boca Raton, Fla., includes the assumption of $200 million of debt.
The acquisition positions Lixil to ride the recovery in U.S. home building, which is spurring demand for kitchen and bath products. It also propels Lixil into the top ranks of global toilet makers, vying with Toto Ltd. 5332.TO +2.44% of Japan, Roca Sanitario SA of Spain and Kohler Co. of Wisconsin in that market. Global sales of toilets are about $8.5 billion a year, according to Freedonia Group, a research firm in Cleveland.
Toto is currently No. 1 globally in toilets, with sales of $1.4 billion, said Matt Zielenski, a Freedonia analyst, and Lixil’s acquisition will boost it into the same range.