Malaysia-based tile maker buys Spanish ceramic & tile manufacturer for €9m

Business & Markets 2013
Written by Surin Murugiah of theedgemalaysia.com
Thursday, 25 April 2013 14:53
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KUALA LUMPUR (April 25): Malaysia-headquartered international tile
maker Niro Ceramic Group (Niro Granite) has acquired Zirconio SA
Spain, one of the leading Spanish manufacturers of ceramic wall and
floor tiles for €9 million.
In a statement Thursday, Niro Granite said this was the first time an
Asian tile manufacturer was buying a European tile maker.
“Traditionally ceramic tile manufacturers have been locally or
regionally focused but this acquisition makes Niro Granite one of the
few to be truly international.
Niro Granite is 53.37% owned by Glenmarie Estates Sdn Bhd, 25.05%
owned by United Malacca Berhad and 21.58% owned by Hicom
Holdings Bhd.
The company said that as a result of the purchase, Niro Granite’s Swiss
quality tiles products would be available to Zirconio’s established
customer and sales network in Europe and the Americas.
“Conversely, Zirconio branded products from Spain will be available to
Niro Granite’s commercial and residential customers worldwide,” it
said.
Niro Granite managing Director, Bong Kuan Shin said the acquisition
translated into almost a doubling of its production capacity.
“This will be a one plus one equals more than two kind of acquisition
because of our synergies,” said Bong.
He said that the acquisition of Zirconio came at an interesting point in
time when Spain together with the rest of Europe is facing economic
upheaval.
“The €9 million that we paid for the company is a reversal in the tide of investments between Asia and Europe.
“However the timely opportunity presented itself and it fits well with our strategy to expand our business globally,” said
Bong.
“We are confident Zirconio will have a significant positive impact on the Niro Ceramic Group within 2 years and we will hit
our RM1 billion annual turnover target in 3 to 5 years,” he said.