Private equity firm Warburg Pincus has acquired a majority stake in bathroom fittings maker Watertec India, according to an announcement on Tuesday.
While the firm did not disclose the financial terms of the transaction, ET reported that the deal will value Watertec at $450 million. Warburg Pincus and domestic PE fund Kedaara Capital were in separate discussions to acquire a stake in Watertec India, ET reported.
Founded in 1996, Watertec manufactures a range of bathroom fittings including taps, showers, mixers, health faucets, bathroom accessories, pipes and sanitaryware. Other players operating in the same segment in India include Kohler, Jaquar, Cera, Roca, Johnson, Duravit and Hindware.
Watertec India CEO and executive director Ramesh Baliga said, “This investment will
enable us to fortify our leadership position in the polymer-bath fittings market, enhance our brand
equity, expand our product portfolio and extend our geographic presence to newer regions.”
“Bath-fittings is an attractive market poised for strong growth driven by secular tailwinds from increasing sanitation levels and housing penetration in India’s tier 2/3 cities spurring greater demand for bath and sanitaryware and the penetration of polymer-based products offering better durability,” Warburg Pincus India managing director Anish Saraf said.
As a part of the transaction, Mathew Job will be joining the company as executive chairman. Job was most recently the CEO of Crompton Greaves Consumer Electricals.
Warburg Pincus, which has more than $80 billion in assets under management, has an active portfolio of more than 250 companies.
Its prominent investments in India include beauty and makeup firm Good Glamm Group and ride-hailing app Ola. Most recently, Warburg Pincus acquired a 90% stake in India’s Vistaar Finance.
In an interview with DealStreetAsia last year, Jeffrey Perlman, managing director and head of Southeast Asia at Warburg Pincus, and Chip Kaye, the firm’s CEO, said they see sizeable opportunities in Southeast Asia, as Warburg looks to replicate its success in markets such as China and India.