Roth extends its sanitary activities significantly. The Dautphetal-based manufacturer of glass showers and complete showers takes over the Czech company Roltechnik with approximately 150 employees. In Czech Republic the company has its headquarters in Třebařov and a further production site in Červená Voda. Further the manufacturer has a subsidiary in Slovakia.
Roltechnik is an established supplier of shower enclosures, steam showers, shower trays, bath tubs and jacuzzis. Czech Republic, Slovakia and Hungary belong to the core markets of the company which was founded in 1991. Until now the owner of Roltechnik was a Czech financial investor.
Dr. Anne-Kathrin Roth, Chief Marketing Officer (CMO) of the Roth Sanitary systems explained: “Roltechnik gives us immediate presence with our successful sanitary sector in markets, where we haven’t been before. The acquisition increases our manufacturing capacity and allows the enlargement of our product ranges. We transform to a full-range-supplier in the relevant product segments and create the basis for the further internationalisation of our business activities. Herewith the new production sites in Czech Republic as well as our site in Dautphetal-Buchenau will be further expanded.”
In the course of the takeover of Roltechnik, the manufacturer wants to exploit possible synergies.
With the expansion Roth completes its existing sanitary programme with further promising elements. The cross-linkage of the product ranges and the enlarged offer of Roth products will be realised fast and will be noticeable for customers very soon. At ISH 2017 Roth will already present new product ranges.
With the new site in Czech Republic new paths into Eastern directions open up for Roth. From there the company plans to have better access to the countries of Eastern Europe for its energy systems as well as for its water and waste water treatment technologies.
In this transaction, Ceska Sporitelna was advised by Clifford Chance, whilst Roth Industries was advised on the financing by Vostarek & Komeiserova.
Interview – Jakub Mudra – Vostarek & Komeiserova:
Please tell us a little about your work.
I joined Vostárek&Komeiserová at the beginning of this year; before that I worked for well-known reputable international law firm specializing for real estates. I participated there in many interesting transactions for Czech and foreign investors. At Vostárek&Komeiserová we provide services to companies that operate in German speaking countries. The next group we serve consists of important Czech players from industrial and commercial sectors. Our office has developed experience over 26 years, so we have rich experience in local markets, which for our clients is a significant advantage.
In general my specialization is corporate and real estate law. I have been involved in a wide range of different engagements, including vendor due diligence engagement, buy-side due diligence projects, development projects and industrial constructions, leases of large industrial or commercial areas, acquisitions, other contractual documentation, and also in financing.
Please tell me about your involvement in the deal?
My task was, together with Dr Vostárek and in cooperation with our German partners, negotiation of the terms of the transaction, and its timing, especially with regard to strategy and also due diligence agenda. In the case of financing it especially involved negotiation conditions and review of contractual documentation prepared by Clifford Chance for the financing bank.
Why is this a good deal for all involved?
The transaction significantly extended the sanitary activities of Roth group, as Roltechnik holds a very strong position in the CEE markets. This move also opens up various Eastern markets for Roth. For Roltechnik this transaction secured a stable parent company, which is still managed as a family business. This allows the company to help with the mounting of Roltechnik on the market and suitable support for mutual growth.
What challenges arose? How did you navigate them?
All in all it was a really smooth process. In such transactions difficulty lies in the crucial timing of the entire process. All parties wished to conclude a transaction and therefore it was not a big problem to come together constructively and everything happened as planned.