Target: Vitromex and St. Thomas Creations Sanitaryware Business
Transaction Type: Sell-side Advisory
Industries: Industrials, Conglomerates, Building Products
Geography: Saltillo, Mexico; San Diego, California

Situation

Seale & Associates was engaged by Grupo Industrial Saltillo to advise on the divestiture of its Sanitaryware Business as part of their corporate strategy to focus on its core business units. GIS’ Sanitaryware Business designs, manufactures and distributes ceramic sanitaryware products in the United States and Mexico. Prior to the sale, the Business was part of GIS’ Vitromex subsidiary and a complex carve-out was required for the transaction.

Seale & Associates’ Approach

Seale professionals ran a competitive global auction process with multiple strategic buyers participating. Seale worked closely with GIS corporate and business level management to prepare carve-out financials for the Business that reflected a stand-alone organization, as well as the positive impact on financial results of a recently implemented operations improvement initiative.

Outcome

The process resulted in the sale of GIS’ Sanitaryware Business to Villeroy & Boch AG (XETRA:VIB3), a leading European ceramic home living, building, and lifestyle products company. Villeroy & Boch was a unique, non-obvious buyer which valued the Business for its Mexico production capabilities and access to the North American sanitaryware market.