Lixil plans to buy Germany’s Grohe

Major housing equipment maker Lixil Group is arranging to buy German bathroom and kitchen fittings maker Grohe AG, sources said.

Tokyo-based Lixil plans to set up a special-purpose company together with the Development Bank of Japan to acquire most of Grohe’s shares for about ¥200 billion and will also take over the German company’s debt of around ¥200 billion, they said Tuesday.

In a statement, Lixil said it is not ruling out the possibility of the acquisition, among other plans, and nothing has been decided.

Lixil has been expanding overseas. In August, it bought ASD Americas Holding Corp., the parent of American Standard Brands, for about ¥50 billion, after acquiring major Italian building material maker Permasteelisa S.p.A. for roughly ¥60 billion in 2011. Earlier this month, it said it would invest ¥5 billion in struggling Sharp Corp.