World's largest ceramics manufacturer streamlines its business interests

Dubai, 19 January, 2014: RAK Ceramics announced that the company has entered into an initial Memorandum of Understanding (MoU) with LATICRETE International. Under the terms of this MoU, RAK Ceramics intends to sell its 50% share in RAK LATICRETE to LATICRETE International.

Formed in 2004, RAK LATICRETE is a joint venture between RAK Ceramics and LATICRETE International. Together, the companies manufacture tile installation systems and waterproofing products for distribution throughout the Middle East and Africa.

In early 2014, RAK Ceramics announced plans to streamline operations and focus on ceramics production. 

"The preliminary sales agreement announced today is in line with our strategy to streamline operations and focus on our core activities of tile, sanitaryware, faucet and tableware production. The MoU is the result of an extensive review that has taken place at board level," said Abdallah Massaad, CEO, RAK Ceramics. "The terms of the agreement are in line with our business strategy of consolidation and the transfer of the asset makes extremely good financial sense. RAK Ceramics received a significant premium to our book value and to the initial cost of RAK LATICRETE."  

"RAK Ceramics has been an excellent partner in Dubai and throughout the region, said Erno de Bruijn, president, International Division of LATICRETE. "Through acquisitions and organic growth, LATICRETE has experienced tremendous international expansion and we are confident that by focusing on new product offerings and enhancing our operations in the Middle East we will continue to grow."  

The MoU is preliminary arrangement that is subject to finalisation through mandatory regulatory procedures. Once the sale has been completed, and after receiving the necessary financial and regulatory approvals, RAK Ceramics will publish a net financial impact report.

About RAK Ceramics
RAK Ceramics is around USD 1 billion global conglomerate that supplies to over 160 countries and has been officially recognised as the world's largest ceramics manufacturer with a global annual production output of 117 million square meters of ceramic and porcelain tiles, 4.6 million pieces of bathware and 24 million pieces of tableware. The Ras Al Khaimah-based public-listed company was established in 1991 by H.H. Sheikh Saud Bin Saqr Al Qasimi, Ruler of Ras Al Khaimah and UAE's Supreme Council Member and H.H. Sheikh Mohammed Bin Saud Al Qasimi, Crown Prince of Ras Al Khaimah and the Chairman of RAK Ceramics who have been directing the company towards global competitiveness.

Media Contacts:
RAK Ceramics
Melanie Kamdar
melanie@rakceram.com

FTI Consulting
Racha Mhanna
+97144372100
racha.mhanna@fticonsulting.com  

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