DC Advisory acts as exclusive financial advisor to KWC Group, a portfolio company of Equistone, on the sale of its OEM division, Nokite EcoSmart Water Heating Systems, to Franke Group
Background
- KWC Group is a premium manufacturer and systems provider for sanitary room equipment, fittings and water management systems
- Funds advised by Equistone Partners Europe (Equistone) acquired a majority stake in KWC Group in April 2021
- KWC Group is now divesting its Original Equipment Manufacturer (OEM), Nokite EcoSmart Water Heating Systems (Guangdong) Co. Ltd. (Nokite) to the Swiss Franke Group
- With around 150 employees, Nokite is a leading OEM manufacturer of high-quality private-label kitchen fittings made of stainless steel, delivering from China to clients worldwide
- Franke Group, headquartered in Aarburg, Switzerland, is a leading global producer and supplier of solutions and equipment for residential kitchens, chain restaurants, convenience stores and coffee preparation
Process
- DC Advisory was mandated as exclusive financial advisor to Equistone and KWC Group on the divestment of Nokite, which represented the final step in KWC Group consolidating its strategic focus on its core area of professional sanitary room equipment aimed at (semi)public facilities and businesses
- DC Advisory supported the shareholders and KWC Group on the carve-out considerations, coordinated the various due diligence workstreams and ran a tailored global auction process with selected buyers
- DC Advisory leveraged its extensive sector experience and global network to assist Equistone and KWC management to find the best partner for Nokite
Outcome
- Nokite will be integrated into Franke Home Solutions, a division of the Franke Group which is a world leading provider of intelligent systems and solutions for residential kitchens, and will support Franke’s focus on intelligent kitchen solutions and the growing water treatment market
- The successful sale enables KWC to focus on its professional business, serving (semi)public institutions such as airports, shopping centres, schools, sports and leisure facilities, as well as hospitals and security facilities
- The transaction demonstrates DC Advisory’s strong track record of providing comprehensive and tailored cross-border sell-side advice to companies in the dynamic building technology sector
- The transaction closed in December 2024
“With the sale of Nokite, KWC Group has completed its strategic realignment and is now able to focus entirely on driving the profitable growth of its professional sanitary room equipment business. We thank DC Advisory for their strong support throughout this journey.”
“It was an honor working on this international transaction and having supported Equistone and KWC for the second time. As a pioneer for stainless steel kitchen taps, Nokite will benefit from the regulatory trend towards the elimination of lead and an accelerated growth of the stainless-steel tap segment."
“We are delighted to have advised Equistone and KWC on this unique cross-border transaction between Europe and China. There are still significant synergies between the two territories when it comes to manufacturing and the consumer market.”
- Industrials
- M&A Advisory
Disclaimer
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