KWC Group has divested its OEM division, Nokite EcoSmart Water Heating Systems, to Franke Group, enabling a concentrated focus on its core business in professional sanitary equipment.

Information on the Target

KWC Group, known for its premium sanitary room equipment and water management systems, is divesting its Original Equipment Manufacturer (OEM) division, Nokite EcoSmart Water Heating Systems, to the Swiss Franke Group. Nokite, based in Guangdong, China, specializes in high-quality private-label kitchen fittings and serves clients globally, positioning itself as a prominent OEM supplier. With around 150 employees, Nokite has established a reputation for delivering innovative kitchen solutions.

This transaction marks a significant milestone for KWC Group, allowing the company to consolidate its efforts on its core competencies. With the support of Equistone funds as its majority shareholder, KWC aims to capitalize on the extensive market opportunities available in the professional sanitary sector, primarily catering to (semi-)public facilities and businesses.

Industry Overview in the Target's Country

The water management and sanitary equipment industry in China is expanding rapidly, driven by increasing urbanization and a rising demand for modern bathroom and kitchen fittings. Th