KWC sharpens focus with Nokite sale to Franke Group
Deal News | Dec 03, 2024 | Equistone Partners Europe
KWC Group, a premium manufacturer known for its sanitary room equipment, has completed the divestment of its Original Equipment Manufacturer (OEM) division, Nokite EcoSmart Water Heating Systems, to the Franke Group. This sale marks the final step in KWC's strategic plan to focus on its professional business in the sanitary room equipment sector, primarily targeting semi-public facilities. Supported by its majority shareholder, Equistone Partners Europe, KWC is now fully poised to expand in this core area, having also divested its medical and home divisions earlier in 2024. The transaction reflects Equistone's ongoing transformation of KWC since acquiring a majority stake in 2021. Nokite, renowned for high-quality OEM kitchen fittings, will now integrate into Franke Group, enhancing its kitchen equipment offerings to private customers. The completion of this sale allows KWC to concentrate resources on pursuing innovative, high-quality solutions for airports, shopping centers, schools, hospitals, and other institutions. Advisors to Equistone in this transaction included DC Advisory for M&A counsel, along with legal and tax advisors from Br & Karrer.
Sectors
- Sanitary Equipment Manufacturing
- Investment and Finance
- Kitchen and Home Appliances
Geography
- Switzerland – KWC Group is based in Switzerland and is involved in the divestment transaction.
- China – Nokite EcoSmart Water Heating Systems, headquartered in China, is being divested in the transaction.
- Global – The transaction involves international companies and affects operations in multiple regions including Europe, the UK, and the Middle East.
Industry
- Sanitary Equipment Manufacturing – KWC specializes in professional sanitary room equipment, fittings, and water management systems, which are central to their strategic focus.
- Investment and Finance – Equistone Partners Europe, as a private equity firm, is pivotal in supporting KWC's strategic business realignment.
- Kitchen and Home Appliances – The sale involves Nokite, a provider of private-label kitchen fittings, to Franke Group, which supplies kitchen equipment and accessories.
Financials
- Undisclosed – Financial details of the transaction.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| KWC Group | Target Company | Company | A premium manufacturer and systems provider for sanitary room equipment and fittings. |
| Franke Group | Bidding Company | Company | A leading international supplier of kitchen equipment, appliances, and accessories. |
| Equistone Partners Europe | Private Equity Firm | Company | Advised funds and holds a majority stake in KWC Group since April 2021. |
| Nokite EcoSmart Water Heating Systems | Division Sold | Company | KWC's OEM division, focused on high-quality private-label kitchen fittings. |
| DC Advisory | M&A Advisor | Company | Provided M&A advisory services for Equistone in the transaction. |
| Br & Karrer | Legal & Tax Advisor | Company | Provided legal and tax advice to Equistone on the transaction. |