Jump to content

User:JBJDus17/Suggestions Grohe: Difference between revisions

From Wikipedia, the free encyclopedia
Browse history interactively
← Previous editNext edit →
Content deleted Content added
VisualWikitext
JBJDus17 (talk | contribs)
53 edits
Included Archive link
JBJDus17 (talk | contribs)
53 edits
Suggestions to update history section
Line 42: Line 42:
=== 1911 until 1990: family-owned ===
=== 1911 until 1990: family-owned ===


The company started as a ferric hardware factory in 1911 under the name '''Berkenhoff & Paschedag''', located in Hemer, Germany; it was taken over by Friedrich Grohe in 1936, who focused on sanitary faucets only. Before that, Friedrich used to work for his father's company [[Hansgrohe]], founded in 1901. The first order from outside of Germany came in 1938. In 1948, the company was renamed to '''Friedrich Grohe Armaturenfabrik'''. In 1961, by which time the company had purchased a factory in [[Lahr]]/Schwarzwald, the company set up its first subsidiary abroad, in France. A year later in 1962, Grohe acquired exclusive rights to produce the [[Alfred M. Moen|Moen Mixing Faucet]], which mixes hot and cold water with a single lever.
The company started as a ferric hardware factory in 1911 under the name '''Berkenhoff & Paschedag''', located in Hemer, Germany; it was taken over by Friedrich Grohe in 1936, who focused on sanitary faucets only. Before that, Friedrich used to work for his father's company [[Hansgrohe]], founded in 1901. The first order from outside of Germany came in 1938. In 1948, the company was renamed to '''Friedrich Grohe Armaturenfabrik.'''<ref name="funding universe">{{cite web|url=http://www.fundinguniverse.com/company-histories/Friedrich-Grohe-AG-amp;-Co-KG-Company-History.html|title=History of Friedrich Grohe AG & Co. KG – FundingUniverse|date=|publisher=Fundinguniverse.com|accessdate=22 July 2017}}</ref> In 1956, Grohe purchased Carl Nestler Armaturenfabrik with its factory in [[Lahr]]/Schwarzwald.<ref>{{Cite news|url=https://www.lahrer-zeitung.de/inhalt.lahr-grohe-strahlt-viel-zuversicht-aus.22f80fcb-443b-4c94-b57c-53ec6e390e6f.html|title=Lahr: Grohe strahlt viel Zuversicht aus - Lahrer Zeitung|last=Germany|first=Lahrer Zeitung,|access-date=2018-10-31|language=de}}</ref> In the same year, the company launched the Skalatherm, an automatic mixing valve with integrated thermostat.<ref>{{Cite news|url=https://www.bo.de/lokales/lahr/moderne-duschen-sind-wellness-pur|title=Offenes Werkstor in Lahr: Moderne Duschen sind Wellness pur|work=Nachrichten der Ortenau - Offenburger Tageblatt|access-date=2019-05-24|language=de}}</ref> In 1961, the company set up its first subsidiary abroad, in France. A year later in 1962, Grohe acquired exclusive rights to produce the [[Alfred M. Moen|Moen Mixing Faucet]], which mixes hot and cold water with a single lever. In 1965, the company expanded into Austria and founded its third subsidiary abroad in Italy in 1967.<ref name="funding universe" />


After Friedrich Grohe took over the management of Hansgrohe in 1961, following the death of the then CEO (Hans Grohe Junior), he sold a 51 percent stake in Friedrich Grohe Amaturenfabrik to [[ITT Inc.|International Telephone and Telegraph (ITT)]] in 1968. In the following years Grohe founded subsidiaries in The Netherlands (1973), the United States (1975), the United Kingdom and Spain (1978) as well as in Belgium (1979).
In 1968, Friedrich Grohe sold a 51% stake, there were some additions to the Lahr production site and a new logistics department was opened at Hemer-Edelburg.<ref name="funding universe">{{cite web|url=http://www.fundinguniverse.com/company-histories/Friedrich-Grohe-AG-amp;-Co-KG-Company-History.html |title=History of Friedrich Grohe AG & Co. KG – FundingUniverse |publisher=Fundinguniverse.com |date= |accessdate=22 July 2017}}</ref>


Under the brand name Ladylux, Grohe introduced the first pull-out spray kitchen faucet in the U.S. market in 1983.<ref name="funding universe" />
⚫
In 1983, the company's products were exclusively distributed in the Middle East, the East Mediterranean as well as North and West Africa by ''Grome Marketing''. Later in 1993, Grohe acquired 50% of Grome, resulting in a joint venture between Mesma Holdings Ltd. and Grohe AG.<ref>{{cite web|url=http://www.constructionweekonline.com/article-44436-grohe-acquires-mesma-holdings-stake-in-grome-jv/|title=Grohe acquires Mesma Holdings’ stake in Grome JV|publisher=Hotelier Middle East| date=16 May 2017|accessdate=15 November 2017}}</ref>


⚫
Since 1983, the company's products were exclusively distributed in the Middle East, the East Mediterranean as well as North and West Africa by ''Grome Marketing''. Later in 1993, Grohe acquired 50% of Grome, resulting in a joint venture between Mesma Holdings Ltd. and Grohe AG.<ref>{{cite web|url=http://www.constructionweekonline.com/article-44436-grohe-acquires-mesma-holdings-stake-in-grome-jv/|title=Grohe acquires Mesma Holdings’ stake in Grome JV|publisher=Hotelier Middle East| date=16 May 2017|accessdate=15 November 2017}}</ref>
⚫
=== 1990s and 2000s: involvement of investors ===


⚫
=== 1990s and 2000s: involvement of investors ===
[[File:Hemer-Grohe1-Asio.jpg|thumb|Grohe Technology Center in Hemer-Edelburg]]
[[File:Hemer-Grohe1-Asio.jpg|thumb|Grohe Technology Center in Hemer-Edelburg]]
In 1991, the company bought two other producers of faucets: ''Herzberger Armaturen GmbH'' from the Brandenburg region and ''Armaturenfabrik H. D. Eichelberg & Co. GmbH'' at [[Iserlohn]] in [[Westphalia]]. Grohe was also restructured as a public limited company. By taking over the ''DAL group'' in 1994, the company acquired a production site in [[Porta Westfalica]], Westphalia; at the same time, the company also acquired ''Tempress Ltd.'' of [[Mississauga]] in Ontario (Canada). At the Hemer site, new technology and factory control facilities were opened. 1996 saw the company expand to Portugal and Thailand. A new design centre followed at the Hemer site in 1997.
In 1991, the company bought two other producers of faucets: ''Herzberger Armaturen GmbH'' from the Brandenburg region and 1817 founded ''Armaturenfabrik H. D. Eichelberg & Co. GmbH'' at [[Iserlohn]] in [[Westphalia]]. Grohe was also restructured as a public limited company. By taking over the 1910 founded ''DAL group'' in 1994, the company acquired a production site in [[Porta Westfalica]], Westphalia; at the same time, the company also acquired ''Tempress Ltd.'' of [[Mississauga]] in Ontario (Canada).<ref>Joachim Zentes, Bernhard Swoboda, Dirk Morschett, Fallstudien zum Internationalen Management: Grundlagen - Praxiserfahrungen – Perspektiven, Private Equity Involvement and Value Added Optimisation – The Case of Grohe, Springer 2011, ISBN 978-3-8349-6793-0, pg. 293</ref> At the Hemer site, new technology and factory control facilities were opened. 1996 saw the company expand to Portugal and Thailand. A new design centre followed at the Hemer site in 1997.<ref name="funding universe" />


In 1998, a group of investors working with [[BC Partners]] bought all available Grohe shares and delisted the company in the following year, making the ''Grohe Holding GmbH'' company, owned by ''BC partners'', into the majority owner of '''Grohe AG''' in 1999. ''BC partners'' sold the company to a consortium of investors from the [[TGP Capital|Texas Pacific Group]] and [[Credit Suisse First Boston|CSFB Private Equity]] (a subsidiary of the Swiss ''Credit Suisse'' banking group) five years later in 2004.
In 1998, a group of investors working with [[BC Partners]] bought all available Grohe shares and delisted the company in the following year, making the ''Grohe Holding GmbH'' company, owned by ''BC partners'', into the majority owner of '''Grohe AG''' in 1999. ''BC partners'' sold the company to a consortium of investors from the [[TPG Capital|Texas Pacific Group]] and [[Credit Suisse First Boston|CSFB Private Equity]] (a subsidiary of the Swiss ''Credit Suisse'' banking group) five years later in 2004.


In 2005, [[Franz Müntefering]], chairman of the then ruling [[Social Democratic Party of Germany]] (SPD), sparked a debate on capitalism by designating foreign private equity firms as "locusts".<ref>{{cite web|url=http://www.dw.de/dw/article/0,,1589069,00.html |title=The Year of the Locust &#124; Germany &#124; DW &#124; 20.05.2005 |publisher=Dw.de |date=14 May 2017 |accessdate=22 July 2017}}</ref> He made TPG-owned Grohe his main example. The "locust" metaphor remained popular in German politics and media for years while the German government cited Grohe as an example for a successful turnaround only three years later.<ref>{{cite web|url=http://www.ft.com/intl/cms/s/0/7d885ddc-331c-11dd-8a25-0000779fd2ac.html|title=Subscribe to read|author=|date=|website=Financial Times|accessdate=29 March 2018}}</ref>
In 2005, [[Franz Müntefering]], chairman of the then ruling [[Social Democratic Party of Germany]] (SPD), sparked a debate on capitalism by designating foreign private equity firms as "locusts".<ref>{{cite web|url=http://www.dw.de/dw/article/0,,1589069,00.html |title=The Year of the Locust &#124; Germany &#124; DW &#124; 20.05.2005 |publisher=Dw.de |date=14 May 2017 |accessdate=22 July 2017}}</ref> He made TPG-owned Grohe his main example. The "locust" metaphor remained popular in German politics and media for years while the German government cited Grohe as an example for a successful turnaround only three years later.<ref>{{cite web|url=http://www.ft.com/intl/cms/s/0/7d885ddc-331c-11dd-8a25-0000779fd2ac.html|title=Subscribe to read|author=|date=|website=Financial Times|accessdate=29 March 2018}}</ref>


The company’s sales and profit figures had been stagnating for years, leading to a programme of savings as of 2005. Around 500 production jobs were cut at sites in Germany and the Herzberg factory was closed; the sites in [[Thailand]] and [[Portugal]] were expanded considerably. Through 2008, investments totalling 130 million euros were made in Germany in the area of production technology and logistics.
The company’s sales and profit figures had been stagnating for years, leading to a programme of savings starting in 2007. Around 950 production jobs were announced to be cut at sites in Germany and the Herzberg factory was closed; the sites in [[Thailand]] and [[Portugal]] were expanded considerably and around 500 new jobs created. Through 2008, investments totaling 200 million euros were made, of which around two thirds were invested in Germany in the areas of production technology and logistics.<ref>{{Cite news|url=https://www.handelsblatt.com/unternehmen/industrie/sanitaerhersteller-streicht-1-200-stellen-grohe-verordnet-sich-harten-sparkurs/2511510.html|title=Sanitärhersteller streicht 1 200 Stellen: Grohe verordnet sich harten Sparkurs|date=2005-06-09|access-date=2019-05-24|language=de}}</ref>


=== 2010-present: recent history ===
=== 2010-present: recent history ===
⚫
<s>Grohe is currently Europe’s biggest manufacturer of sanitary fittings and has eight percent of the worldwide market.<ref name="grohe-facts">{{cite web |url=http://www.grohe.com/en/about-grohe/facts-figures/p/25_8628.html |title=AG Company Page - Welcome to |publisher=GROHE |date= |accessdate=22 July 2017 |archive-url=https://archive.is/20100806060509/http://www.grohe.com/en/about-grohe/facts-figures/p/25_8628.html |archive-date=6 August 2010 |dead-url=yes |df=dmy-all}}</ref> The German market makes up roughly 15 percent of overall sales. Currently, Grohe AG is owned almost 100% by Grohe Holding GmbH (there are still some minority shareholders from the period in which Grohe AG was listed on the stock market). Grohe Holding GmbH is owned by investors.</s> {{Fontcolor|green|I would like to suggest to delete this part and rather describe the current structure of Grohe in a separate paragraph.}}


⚫
In June 2010, the company saw a ruling against the European sanitary fittings industry by the [[European Commission]]. The Commission found that European manufacturers had operated a [[cartel]] between 1992 and 2002 and imposed a collective fine of 622 million euros. Grohe's share of the fine amounted to 54.8 million euros.<ref>{{cite web|url=http://europa.eu/rapid/pressReleasesAction.do?reference=IP/10/790&type=HTML |title=European Commission - PRESS RELEASES - Press release - Antitrust: Commission fines 17 bathroom equipment manufacturers € 622 million in price fixing cartel |publisher=Europa.eu |date= |accessdate=22 July 2017}}</ref> The Grohe board of directors at that time, which took up business after the period under investigation, introduced awareness programmes about competition law and operates a zero-tolerance policy towards price-fixing.<ref>[http://www.grohe.com/htlib/3/PDF/GROHE_CoB.pdf ]{{dead link|date=July 2017}}</ref>
⚫
Grohe is currently Europe’s biggest manufacturer of sanitary fittings and has eight percent of the worldwide market.<ref name="grohe-facts">{{cite web |url=http://www.grohe.com/en/about-grohe/facts-figures/p/25_8628.html |title=AG Company Page - Welcome to |publisher=GROHE |date= |accessdate=22 July 2017 |archive-url=https://archive.is/20100806060509/http://www.grohe.com/en/about-grohe/facts-figures/p/25_8628.html |archive-date=6 August 2010 |dead-url=yes |df=dmy-all }}</ref> The German market makes up roughly 15 percent of overall sales. Currently, Grohe AG is owned almost 100% by Grohe Holding GmbH (there are still some minority shareholders from the period in which Grohe AG was listed on the stock market). Grohe Holding GmbH is owned by investors.


⚫
In early 2011, Grohe acquired a majority stake in the leading Chinese sanitary fittings producer ''Joyou'', making a successful public takeover bid. The aim of this takeover was above all to strengthen Grohe’s sales infrastructure in the fast-growing Asian market. In 2015 control of ''Joyou AG'' was ceded to a court-appointed bankruptcy administrator after "fraudulent accounting" dating from 2008 was discovered.<ref>{{Cite web|url=https://www.ft.com/content/94227492-8247-11e5-a01c-8650859a4767|title=Chinese shadow banking scandal blights Lixil’s international expansion strategy|last=Hornby|first=Lucy|last2=Shotter|first2=James|date=2016-01-11|website=Financial Times|language=en-GB|access-date=2018-10-31}}</ref>
⚫
In June 2010, the company saw a ruling against the European sanitary fittings industry by the [[European Commission]]. The Commission found that European manufacturers had operated a [[cartel]] between 1992 and 2002 and imposed a collective fine of 622 million euros. Grohe's share of the fine amounted to 54.8 million euros.<ref>{{cite web|url=http://europa.eu/rapid/pressReleasesAction.do?reference=IP/10/790&type=HTML |title=European Commission - PRESS RELEASES - Press release - Antitrust: Commission fines 17 bathroom equipment manufacturers € 622 million in price fixing cartel |publisher=Europa.eu |date= |accessdate=22 July 2017}}</ref> The Grohe board of directors, which took up business after the period under investigation, introduced awareness programmes about competition law and operates a zero-tolerance policy towards price-fixing.<ref>[http://www.grohe.com/htlib/3/PDF/GROHE_CoB.pdf ]{{dead link|date=July 2017}}</ref>

⚫
In early 2011, Grohe acquired a majority stake in the leading Chinese sanitary fittings producer ''Joyou'', making a successful public takeover bid. The aim of this takeover is above all to strengthen Grohe’s sales infrastructure on the fast-growing Asian market.<ref>{{cite web|url=https://www.reuters.com/finance/stocks/JY8G.DE/key-developments/article/2344643|title=Page Not Found - Reuters.com|first=Reuters|last=Editorial|date=|website=U.S.|accessdate=29 March 2018}}</ref> Grohe currently holds a 72 percent stake in Joyou.<ref name="grohe figures 2012" />


[[File:Grohe kitchen faucet veris 1.jpg|thumb|Grohe Kitchen Faucet Veris 1]]
[[File:Grohe kitchen faucet veris 1.jpg|thumb|Grohe Kitchen Faucet Veris 1]]
In 2012, Grohe AG's revenues increased by 21 percent to 1,405 million euros; [[operating profit]]s improved by 18 percent to reach 273 million euros, representing a [[net income|return on revenue]] of 19.4 percent.<ref name="grohe figures 2012">{{cite web|url=http://www.grohe-group.com/en/press/press-releases/p/25_8630.html?item=1155&id_cat=77 |title=GROHE - Grohe AG Company Page - Welcome to GROHE |publisher=Grohe-group.com |date= |accessdate=22 July 2017}}</ref>
In 2012, Grohe AG's revenues increased by 21 percent to 1,405 million euros; [[operating profit]]s improved by 18 percent to reach 273 million euros, representing a [[net income|return on revenue]] of 19.4 percent.<ref>{{cite web |url=http://www.grohe-group.com/de/presse/presse-informationen/p/22_8630.html?item=1155&id_cat=16 |title=Archived copy |accessdate=2019-05-24 |deadurl=yes |archiveurl=https://web.archive.org/web/20131227133355/http://www.grohe-group.com/de/presse/presse-informationen/p/22_8630.html?item=1155&id_cat=16 |archivedate=27 December 2013 |df=dmy-all }}</ref>


In May 2013, David Haines, chairman of Grohe, confirmed that, although the company is examining all options for ending investor involvement, no concrete plans had yet been made. Capital market experts estimate that Grohe would currently be valued at up to four billion euros if it were to return to the stock market.<ref>{{cite web|author=Reuters Editorial |url=http://uk.reuters.com/article/2013/05/13/uk-grohe-ipo-idUKBRE94C0Q420130513 |title=Private equity owners pick IPO banks for Grohe &#124; Reuters |publisher=Uk.reuters.com |date=18 April 2013 |accessdate=22 July 2017}}</ref>
In May 2013, David Haines, chairman of Grohe at that time, confirmed that, although the company is examining all options for ending investor involvement, no concrete plans had yet been made. Capital market experts estimate that Grohe would currently be valued at up to four billion euros if it were to return to the stock market.<ref>{{cite web|author=Reuters Editorial |url=http://uk.reuters.com/article/2013/05/13/uk-grohe-ipo-idUKBRE94C0Q420130513 |title=Private equity owners pick IPO banks for Grohe &#124; Reuters |publisher=Uk.reuters.com |date=18 April 2013 |accessdate=22 July 2017}}</ref>


In September 2013, it was announced that Grohe had received the largest ever investment from a Japanese company in Germany. The firm is now almost entirely owned by the Japanese building materials company Lixil Group and the [[Development Bank of Japan]], after a €3 billion deal for 87.5 percent of the firm.<ref>{{cite web|author=CEST+02:00 |url=http://www.thelocal.de/money/20130926-52109.html |title=Toilet giant Grohe gets €3bn Japan investment - The Local |publisher=Thelocal.de |date=26 September 2013 |accessdate=22 July 2017}}</ref>
In September 2013, it was announced that Grohe had received the largest ever investment from a Japanese company in Germany. Lixil Group and the [[Development Bank of Japan]] bought 87.5 percent of the firm for EUR 3 billion.<ref>{{cite web|author=CEST+02:00 |url=http://www.thelocal.de/money/20130926-52109.html |title=Toilet giant Grohe gets €3bn Japan investment - The Local |publisher=Thelocal.de |date=26 September 2013 |accessdate=22 July 2017}}</ref> The remaning shares were taken over by Lixil Group and the Development Bank of Japan in January 2014.<ref>{{cite web |url=http://www.grohe.com/30212/about-company/the-grohe-group/ |title=Archived copy |accessdate=2015-09-25 |deadurl=yes |archiveurl=https://web.archive.org/web/20150925114812/http://www.grohe.com/30212/about-company/the-grohe-group/ |archivedate=25 September 2015 |df=dmy-all }}</ref>


As of 1 January 2015, Michael Rauterkus took over as CEO of Grohe AG.<ref>{{Cite news|url=https://constructionreviewonline.com/2015/02/michael-rauterkus-new-grohe-ceo/|title=Michael Rauterkus is new Grohe CEO|last=Barnes|first=Robert|date=2015-02-10|work=Construction Review Online|access-date=2019-05-24|language=en-US}}</ref>
Grohe was taken over by Lixil and the Development Bank of Japan in January 2014.<ref>{{cite web |url=http://www.grohe.com/30212/about-company/the-grohe-group/ |title=Archived copy |accessdate=2015-09-25 |deadurl=yes |archiveurl=https://web.archive.org/web/20150925114812/http://www.grohe.com/30212/about-company/the-grohe-group/ |archivedate=25 September 2015 |df=dmy-all }}</ref>


In February 2017, the company's revenues accounted 965 million euros during the first nine months of the fiscal year. Grohe claimed their solid growth is based on their international marketshares with Grohe products available in 150 countries as well as increasing sales in Germany.<ref>{{cite web|url=http://www.wiwo.de/unternehmen/handel/armaturenhersteller-grohe-profitiert-von-deutschem-bauboom/19602546.html |title=Grohe profitiert von deutschem Bauboom |publisher=WirtschaftsWoche| date=2 February 2017|accessdate=15 November 2017}}</ref>
In February 2017, the company's revenues accounted 965 million euros during the first nine months of the fiscal year. Grohe claimed their solid growth is based on their international marketshares with Grohe products available in 150 countries as well as increasing sales in Germany.<ref>{{cite web|url=http://www.wiwo.de/unternehmen/handel/armaturenhersteller-grohe-profitiert-von-deutschem-bauboom/19602546.html |title=Grohe profitiert von deutschem Bauboom |publisher=WirtschaftsWoche| date=2 February 2017|accessdate=15 November 2017}}</ref>
Line 80: Line 80:
In May 2017, Grohe announced the takeover of the former joint venture Grome.<ref>{{cite web|url=http://www.hoteliermiddleeast.com/30539-grohe-takes-full-ownership-of-grome-joint-venture/|title=Grohe takes full ownership of Grome joint venture|publisher=Hotelier Middle East| date=11 May 2017|accessdate=15 November 2017}}</ref>
In May 2017, Grohe announced the takeover of the former joint venture Grome.<ref>{{cite web|url=http://www.hoteliermiddleeast.com/30539-grohe-takes-full-ownership-of-grome-joint-venture/|title=Grohe takes full ownership of Grome joint venture|publisher=Hotelier Middle East| date=11 May 2017|accessdate=15 November 2017}}</ref>


In September 2017, Grohe was listed in the ''Change the World'' ranking of the business magazine Fortune as one of 50 international companies whose strategy have a positive impact on society.<ref>{{cite web||url=http://realnewsmagazine.net/business/fortune-magazine-names-grohe-among-top-companies-changing-world/ |title=Fortune Magazine names GROHE among Top Companies changing the World |publisher=Real News Magazine|date=18 September 2017 |accessdate=29 September 2017}}</ref>
In September 2017, Grohe was listed in the ''Change the World'' ranking of the business magazine Fortune as one of 50 international companies whose strategy have a positive impact on society.<ref>{{cite web|url=http://realnewsmagazine.net/business/fortune-magazine-names-grohe-among-top-companies-changing-world/ |title=Fortune Magazine names GROHE among Top Companies changing the World |publisher=Real News Magazine|date=18 September 2017 |accessdate=29 September 2017}}</ref>

2017 also saw Grohe opening a new plant in Thailand.<ref>{{Cite news|url=http://www.nationmultimedia.com/detail/Corporate/30331248|title=New manufacturing facility in Rayong a big step for Grohe|work=The Nation|access-date=2019-05-24|language=en}}</ref> In addition, the company introduced new products such as a programmable shower toilet<ref>{{Cite news|url=https://www.economist.com/business/2017/11/11/japans-top-two-lavatory-makers-are-at-last-making-inroads-overseas|title=Japan’s top two lavatory-makers are at last making inroads overseas|work=The Economist|access-date=2019-05-24|language=en}}</ref> and in the newly created product group ''Smarthome'' a water sensor and Grohe Sense Guard, a system designed to protect pipe bursts and leaks.<ref>{{Cite news|url=https://www.telegraph.co.uk/property/interiors/baths-run-self-cleaning-sinks-welcome-bathrooms-future/|title=Baths that run themselves and self-cleaning sinks: welcome to the bathrooms of the future|last=Brooks|first=Emily|date=2018-08-14|work=The Telegraph|access-date=2019-05-24|language=en-GB|issn=0307-1235}}</ref> At the trade fair ISH in March 2019, Grohe presented faucets made in a 3D printer from extra-produced granules.<ref>{{Cite web|url=https://www.dezeen.com/2019/03/19/grohe-3d-printed-taps-atrio-icon-allure-brilliant/|title=Grohe unveils duo of 3D metal-printed taps|date=2019-03-19|publisher=Dezeen|accessdate=2019-05-24}}</ref><ref>{{cite web|url=https://www.kbbreview.com/21839/news/grohe-revolutionary-3d-printed-taps-unveiled-at-ish-the-tip-of-the-iceberg/|title=Grohe ‘revolutionary’ 3D printed taps unveilled at ISH ‘The tip of the iceberg’ |publisher=kbbreview |date=2019-03-15 |accessdate=2019-05-24}}</ref> At the same trade fair, [[Miele]], [[Viessmann]] and Grohe launched a cross-industry dialogue in the field of ''intelligent living'' for digitization in living spaces and digital transformation in companies and industries.<ref>{{cite web|url=https://www.busiweek.com/internet-of-things-to-connect-125-billion-devices-worldwide-by-2030/|title=Internet Of Things To Connect 125 Billion Devices Worldwide By 2030 |publisher=East African Business Week |date=2019-03-20 |accessdate=2019-05-24}}</ref>


==Grohe in the U.S.==
==Grohe in the U.S.==
Line 92: Line 94:
These shower systems saw Grohe America take the step of advertising directly to consumers. For commercial customers, Grohe introduced a new product line in 1989, following it up with a showroom marketing program for wholesalers. In 1996, Grohe America launched its first television advertisement campaign and started offering a limited lifetime warranty in 1997. By the mid-1990s, Grohe America was selling fixtures with a value of $38 million annually, with a market share of 1.7 percent.
These shower systems saw Grohe America take the step of advertising directly to consumers. For commercial customers, Grohe introduced a new product line in 1989, following it up with a showroom marketing program for wholesalers. In 1996, Grohe America launched its first television advertisement campaign and started offering a limited lifetime warranty in 1997. By the mid-1990s, Grohe America was selling fixtures with a value of $38 million annually, with a market share of 1.7 percent.


Grohe opened a 15,000 square-foot showroom for professional partners and visitors on [[Fifth Avenue]] in [[New York City]] in September 2011.<ref>{{cite web|url=http://www.grohe.com/en/press/press-releases/p/25_8630.html?item=788&id_cat=77 |title=AG Company Page - Welcome to |publisher=GROHE |date= |accessdate=22 July 2017}}</ref> In February 2012, Grohe announced its US headquarters will move from Bloomingdale, Illinois to New York City.<ref>{{cite web|url=http://www.supplyht.com/Articles/Bath_and_Kitchen_News/BNP_GUID_9-5-2006_A_10000000000001158566 |title=GROHE moves U.S. headquarters to New York |publisher=Supplyht.com |date=23 February 2012 |accessdate=22 July 2017}}</ref>
Grohe opened a 15,000 square-foot showroom for professional partners and visitors on [[Fifth Avenue]] in [[New York City]] in September 2011.<ref>{{cite web|url=https://www.prnewswire.com/news-releases/grohe-brings-the-latest-in-cutting-edge-design-for-the-bathroom-and-kitchen-to-the-heart-of-new-york-city-opening-the-grohe-live-center-129445783.html |title=GROHE Brings the Latest in Cutting-Edge Design for the Bathroom and Kitchen to the Heart of New York City, Opening the Grohe Live! Center |publisher=Grohe |date=8 September 2011 |accessdate=24 May 2019}}</ref> In February 2012, Grohe announced its US headquarters will move from Bloomingdale, Illinois to New York City.<ref>{{cite web|url=http://www.supplyht.com/Articles/Bath_and_Kitchen_News/BNP_GUID_9-5-2006_A_10000000000001158566 |title=GROHE moves U.S. headquarters to New York |publisher=Supplyht.com |date=23 February 2012 |accessdate=22 July 2017}}</ref>


==References==
==References==

Revision as of 13:24, 24 May 2019

{{Connected contributor (paid)}} should only be used on talk pages.

This page is about the company. For people with the name, see Grohe (surname).

Grohe AG
Company typeSubsidiary of Lixil Group
IndustrySanitary Fittings
Founded1936 (1936)
FounderFriedrich Grohe
Headquarters
Düsseldorf
,
Germany
Area served
Worldwide
Key people
Michael Rauterkus (CEO of Grohe AG)
Revenue€ 1.35 billion (2017) [1]
Number of employees
5,831 (2017) [1]
ParentLixil Group
Websitewww.grohe.com

Grohe is a German sanitary fittings manufacturer with its registered office in Hemer and headquarters in Düsseldorf. Since 2014, Grohe has been part of the Japanese Lixil Group. The company generated consolidated sales revenues of EUR 1.35 billion in 2017. Grohe employs about 6,000 people worldwide.

History

1911 until 1990: family-owned

The company started as a ferric hardware factory in 1911 under the name Berkenhoff & Paschedag, located in Hemer, Germany; it was taken over by Friedrich Grohe in 1936, who focused on sanitary faucets only. Before that, Friedrich used to work for his father's company Hansgrohe, founded in 1901. The first order from outside of Germany came in 1938. In 1948, the company was renamed to Friedrich Grohe Armaturenfabrik.[2] In 1956, Grohe purchased Carl Nestler Armaturenfabrik with its factory in Lahr/Schwarzwald.[3] In the same year, the company launched the Skalatherm, an automatic mixing valve with integrated thermostat.[4] In 1961, the company set up its first subsidiary abroad, in France. A year later in 1962, Grohe acquired exclusive rights to produce the Moen Mixing Faucet, which mixes hot and cold water with a single lever. In 1965, the company expanded into Austria and founded its third subsidiary abroad in Italy in 1967.[2]

After Friedrich Grohe took over the management of Hansgrohe in 1961, following the death of the then CEO (Hans Grohe Junior), he sold a 51 percent stake in Friedrich Grohe Amaturenfabrik to International Telephone and Telegraph (ITT) in 1968. In the following years Grohe founded subsidiaries in The Netherlands (1973), the United States (1975), the United Kingdom and Spain (1978) as well as in Belgium (1979).

Under the brand name Ladylux, Grohe introduced the first pull-out spray kitchen faucet in the U.S. market in 1983.[2]

Since 1983, the company's products were exclusively distributed in the Middle East, the East Mediterranean as well as North and West Africa by Grome Marketing. Later in 1993, Grohe acquired 50% of Grome, resulting in a joint venture between Mesma Holdings Ltd. and Grohe AG.[5]

1990s and 2000s: involvement of investors

Grohe Technology Center in Hemer-Edelburg

In 1991, the company bought two other producers of faucets: Herzberger Armaturen GmbH from the Brandenburg region and 1817 founded Armaturenfabrik H. D. Eichelberg & Co. GmbH at Iserlohn in Westphalia. Grohe was also restructured as a public limited company. By taking over the 1910 founded DAL group in 1994, the company acquired a production site in Porta Westfalica, Westphalia; at the same time, the company also acquired Tempress Ltd. of Mississauga in Ontario (Canada).[6] At the Hemer site, new technology and factory control facilities were opened. 1996 saw the company expand to Portugal and Thailand. A new design centre followed at the Hemer site in 1997.[2]

In 1998, a group of investors working with BC Partners bought all available Grohe shares and delisted the company in the following year, making the Grohe Holding GmbH company, owned by BC partners, into the majority owner of Grohe AG in 1999. BC partners sold the company to a consortium of investors from the Texas Pacific Group and CSFB Private Equity (a subsidiary of the Swiss Credit Suisse banking group) five years later in 2004.

In 2005, Franz Müntefering, chairman of the then ruling Social Democratic Party of Germany (SPD), sparked a debate on capitalism by designating foreign private equity firms as "locusts".[7] He made TPG-owned Grohe his main example. The "locust" metaphor remained popular in German politics and media for years while the German government cited Grohe as an example for a successful turnaround only three years later.[8]

The company’s sales and profit figures had been stagnating for years, leading to a programme of savings starting in 2007. Around 950 production jobs were announced to be cut at sites in Germany and the Herzberg factory was closed; the sites in Thailand and Portugal were expanded considerably and around 500 new jobs created. Through 2008, investments totaling 200 million euros were made, of which around two thirds were invested in Germany in the areas of production technology and logistics.[9]

2010-present: recent history

Grohe is currently Europe’s biggest manufacturer of sanitary fittings and has eight percent of the worldwide market.[10] The German market makes up roughly 15 percent of overall sales. Currently, Grohe AG is owned almost 100% by Grohe Holding GmbH (there are still some minority shareholders from the period in which Grohe AG was listed on the stock market). Grohe Holding GmbH is owned by investors. I would like to suggest to delete this part and rather describe the current structure of Grohe in a separate paragraph.

In June 2010, the company saw a ruling against the European sanitary fittings industry by the European Commission. The Commission found that European manufacturers had operated a cartel between 1992 and 2002 and imposed a collective fine of 622 million euros. Grohe's share of the fine amounted to 54.8 million euros.[11] The Grohe board of directors at that time, which took up business after the period under investigation, introduced awareness programmes about competition law and operates a zero-tolerance policy towards price-fixing.[12]

In early 2011, Grohe acquired a majority stake in the leading Chinese sanitary fittings producer Joyou, making a successful public takeover bid. The aim of this takeover was above all to strengthen Grohe’s sales infrastructure in the fast-growing Asian market. In 2015 control of Joyou AG was ceded to a court-appointed bankruptcy administrator after "fraudulent accounting" dating from 2008 was discovered.[13]

Grohe Kitchen Faucet Veris 1

In 2012, Grohe AG's revenues increased by 21 percent to 1,405 million euros; operating profits improved by 18 percent to reach 273 million euros, representing a return on revenue of 19.4 percent.[14]

In May 2013, David Haines, chairman of Grohe at that time, confirmed that, although the company is examining all options for ending investor involvement, no concrete plans had yet been made. Capital market experts estimate that Grohe would currently be valued at up to four billion euros if it were to return to the stock market.[15]

In September 2013, it was announced that Grohe had received the largest ever investment from a Japanese company in Germany. Lixil Group and the Development Bank of Japan bought 87.5 percent of the firm for EUR 3 billion.[16] The remaning shares were taken over by Lixil Group and the Development Bank of Japan in January 2014.[17]

As of 1 January 2015, Michael Rauterkus took over as CEO of Grohe AG.[18]

In February 2017, the company's revenues accounted 965 million euros during the first nine months of the fiscal year. Grohe claimed their solid growth is based on their international marketshares with Grohe products available in 150 countries as well as increasing sales in Germany.[19]

In May 2017, Grohe announced the takeover of the former joint venture Grome.[20]

In September 2017, Grohe was listed in the Change the World ranking of the business magazine Fortune as one of 50 international companies whose strategy have a positive impact on society.[21]

2017 also saw Grohe opening a new plant in Thailand.[22] In addition, the company introduced new products such as a programmable shower toilet[23] and in the newly created product group Smarthome a water sensor and Grohe Sense Guard, a system designed to protect pipe bursts and leaks.[24] At the trade fair ISH in March 2019, Grohe presented faucets made in a 3D printer from extra-produced granules.[25][26] At the same trade fair, Miele, Viessmann and Grohe launched a cross-industry dialogue in the field of intelligent living for digitization in living spaces and digital transformation in companies and industries.[27]

Grohe in the U.S.

In 1975, Grohe opened a small office just outside Chicago, and its representative, Urell, Inc. in Massachusetts, began supplying European-style kitchen and bathroom fixtures to American tradesmen and retailers. The new venture was incorporated a year later as Grohe America, Inc. and moved into a small warehouse-office complex. In order to keep pace with its rapid growth, the company regularly upsized its premises: a section of a larger warehouse facility in 1978, a whole warehouse in Wood Dale in 1986, and finally settled into today’s custom-built 90,000 square-foot facility in Bloomingdale, Illinois, in 1993.[2]

Sales figures doubled year after year as Grohe introduced a series of products such as the Ladylux of 1983 – the first pull-out spray kitchen faucet, including detachable hand-spray and snap-on accessories (also the first hand-spray with a filter for drinking water), on the US market – or the Europlus of 1989, another pull-out spray faucet. In the early 1990s, Grohe introduced a new designer finish "white" which increased sales for the next 7 years. Introduction of clear powder-coating in the 1980s resulted in the advent of polished brass and other finishes having superior adhesion, solving a major problem in the industry. In the late 1990s, Grohe replaced the powder-coated first generation of these products with stainless steel versions.

1979 saw the launch of the Grohmix thermostat line, able to regulate water temperature to an accuracy of one degree Fahrenheit. In 1980, Grohe also implemented water-temperature regulation technology.

These shower systems saw Grohe America take the step of advertising directly to consumers. For commercial customers, Grohe introduced a new product line in 1989, following it up with a showroom marketing program for wholesalers. In 1996, Grohe America launched its first television advertisement campaign and started offering a limited lifetime warranty in 1997. By the mid-1990s, Grohe America was selling fixtures with a value of $38 million annually, with a market share of 1.7 percent.

Grohe opened a 15,000 square-foot showroom for professional partners and visitors on Fifth Avenue in New York City in September 2011.[28] In February 2012, Grohe announced its US headquarters will move from Bloomingdale, Illinois to New York City.[29]

References

  1. ^ a b "Konzernabschluss zum Geschäftsjahr vom 01.04.2016 bis zum 31.03.2017 der Grohe AG". 8 March 2018. Retrieved 20 May 2019.
  2. ^ a b c d e "History of Friedrich Grohe AG & Co. KG – FundingUniverse". Fundinguniverse.com. Retrieved 22 July 2017.
  3. ^ Germany, Lahrer Zeitung,. "Lahr: Grohe strahlt viel Zuversicht aus - Lahrer Zeitung" (in German). Retrieved 31 October 2018.{{cite news}}: CS1 maint: extra punctuation (link) CS1 maint: multiple names: authors list (link)
  4. ^ "Offenes Werkstor in Lahr: Moderne Duschen sind Wellness pur". Nachrichten der Ortenau - Offenburger Tageblatt (in German). Retrieved 24 May 2019.
  5. ^ "Grohe acquires Mesma Holdings' stake in Grome JV". Hotelier Middle East. 16 May 2017. Retrieved 15 November 2017.
  6. ^ Joachim Zentes, Bernhard Swoboda, Dirk Morschett, Fallstudien zum Internationalen Management: Grundlagen - Praxiserfahrungen – Perspektiven, Private Equity Involvement and Value Added Optimisation – The Case of Grohe, Springer 2011, ISBN 978-3-8349-6793-0, pg. 293
  7. ^ "The Year of the Locust | Germany | DW | 20.05.2005". Dw.de. 14 May 2017. Retrieved 22 July 2017.
  8. ^ "Subscribe to read". Financial Times. Retrieved 29 March 2018. {{cite web}}: Cite uses generic title (help)
  9. ^ "Sanitärhersteller streicht 1 200 Stellen: Grohe verordnet sich harten Sparkurs" (in German). 9 June 2005. Retrieved 24 May 2019.
  10. ^ "AG Company Page - Welcome to". GROHE. Archived from the original on 6 August 2010. Retrieved 22 July 2017. {{cite web}}: Unknown parameter |dead-url= ignored (|url-status= suggested) (help)
  11. ^ "European Commission - PRESS RELEASES - Press release - Antitrust: Commission fines 17 bathroom equipment manufacturers € 622 million in price fixing cartel". Europa.eu. Retrieved 22 July 2017.
  12. ^ [1][dead link]
  13. ^ Hornby, Lucy; Shotter, James (11 January 2016). "Chinese shadow banking scandal blights Lixil's international expansion strategy". Financial Times. Retrieved 31 October 2018.
  14. ^ "Archived copy". Archived from the original on 27 December 2013. Retrieved 24 May 2019. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)CS1 maint: archived copy as title (link)
  15. ^ Reuters Editorial (18 April 2013). "Private equity owners pick IPO banks for Grohe | Reuters". Uk.reuters.com. Retrieved 22 July 2017. {{cite web}}: |author= has generic name (help)
  16. ^ CEST+02:00 (26 September 2013). "Toilet giant Grohe gets €3bn Japan investment - The Local". Thelocal.de. Retrieved 22 July 2017.{{cite web}}: CS1 maint: numeric names: authors list (link)
  17. ^ "Archived copy". Archived from the original on 25 September 2015. Retrieved 25 September 2015. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)CS1 maint: archived copy as title (link)
  18. ^ Barnes, Robert (10 February 2015). "Michael Rauterkus is new Grohe CEO". Construction Review Online. Retrieved 24 May 2019.
  19. ^ "Grohe profitiert von deutschem Bauboom". WirtschaftsWoche. 2 February 2017. Retrieved 15 November 2017.
  20. ^ "Grohe takes full ownership of Grome joint venture". Hotelier Middle East. 11 May 2017. Retrieved 15 November 2017.
  21. ^ "Fortune Magazine names GROHE among Top Companies changing the World". Real News Magazine. 18 September 2017. Retrieved 29 September 2017.
  22. ^ "New manufacturing facility in Rayong a big step for Grohe". The Nation. Retrieved 24 May 2019.
  23. ^ "Japan's top two lavatory-makers are at last making inroads overseas". The Economist. Retrieved 24 May 2019.
  24. ^ Brooks, Emily (14 August 2018). "Baths that run themselves and self-cleaning sinks: welcome to the bathrooms of the future". The Telegraph. ISSN 0307-1235. Retrieved 24 May 2019.
  25. ^ "Grohe unveils duo of 3D metal-printed taps". Dezeen. 19 March 2019. Retrieved 24 May 2019.
  26. ^ "Grohe 'revolutionary' 3D printed taps unveilled at ISH 'The tip of the iceberg'". kbbreview. 15 March 2019. Retrieved 24 May 2019.
  27. ^ "Internet Of Things To Connect 125 Billion Devices Worldwide By 2030". East African Business Week. 20 March 2019. Retrieved 24 May 2019.
  28. ^ "GROHE Brings the Latest in Cutting-Edge Design for the Bathroom and Kitchen to the Heart of New York City, Opening the Grohe Live! Center". Grohe. 8 September 2011. Retrieved 24 May 2019.
  29. ^ "GROHE moves U.S. headquarters to New York". Supplyht.com. 23 February 2012. Retrieved 22 July 2017.

External links

Category:German brands Category:Companies based in Düsseldorf Category:Manufacturing companies established in 1936 Category:Private equity portfolio companies Category:Bathroom fixture companies Category:Lixil Category:1936 establishments in Germany

Retrieved from "https://en.wikipedia.org/w/index.php?title=User:JBJDus17/Suggestions_Grohe&oldid=898571686"