Kitchen and Bathroom News @ The K&BZine

The Spanish appliance manufacturer Fagor Electrodomesticos has made a binding offer to the Dutch company Elco Holland BV (a subsidiary of the Israeli company Elco Holdings Ltd) to acquire its 90% stake in Elco France BV. The proposed acquisition would see De Dietrich and Brandt UK becoming subsidiaries of the Basque manufacturer. De Dietrich's MD Christophe Gontier said it was 'business as usual' and his priority was hitting sales targets for the month.

Together with MCC Inversiones, Fagor already holds the other 10% of Elco France BV’s share capital.

Elco France BV is the owner of the French company ElcoBrandt SA, a market leader in France for domestic appliances.

Following the presentation of this firm offer, Elco Holland BV has granted Fagor a period of exclusivity. Elco Holland BV is now evaluating Fagor’s bid which, if it is accepted, will be subject to prior compliance with the relevant corporate and regulatory requirements.

For information on any of Fagor’s products, call the UK sales office on 0207 354 0044, or email mailto:sales@fagorappliances.co.uk.

A month after Elco Holdings announced its intention to sell Elco Brandt, its subsidiary in France, the firm said this week that it has an offer.

Elco, which is controlled by Gershon Salkind, said it wanted to obtain a company valuation of 150-200 million euros for the French company. This week it said its partner in Elco Brandt, Fagor, which owns 10 percent, is offering to buy its share for 162.5 million euros.

When the deal is closed, Elco Holdings will get back the 27 million euros it lent to the French subsidiary, plus interest.

Elco has agreed to give Fagor's offer exclusivity for a period of time, apparently several weeks, during which it will examine it, and regulatory issues. The sale would need approval from antitrust authorities, labour unions and the courts that oversaw Brandt Moulinex's 2002 bankruptcy sale. Elco has apparently received other bids as well.

Elco Holdings paid 48.6 million euros for Brandt, and gave the company a shareholder's loan of 54 million euros, paid to Brandt's receivers out of cash flow. Elco Brandt's balance sheet value is 84 million euros, due to its 30 million euro contribution to profits, despite a series of restructuring charges.

A month ago a Bank Hapoalim equity analyst said that if Elco Brandt is sold at the lower end of the range, 150 million euros, the parent company Elco Holdings will post a huge capital gain of 80 million euros. On that, it would have to pay between 12-15 million euros to Tadiran.

Elco Holdings could post a large profit on the Brandt investment thanks to the low purchase price and despite the fact the subsidiary did not meet milestones determined under the purchase terms.

Elco Brandt posted operating profits of NIS 58 million on turnover of NIS 3.8 billion in the first nine months of 2004. This amounts to 1.5 percent of turnover, compared to its 2.5 percent operating profit margin in the first nine months of 2003.

Elco Holdings defined the Brandt acquisition as step toward target sales of 900-930 million euros in 2004 and operating margins of 5 percent of turnover. However, Fagor may get a substantially streamlined company. The agreement with the receiver prohibited layoffs in the first two years after the purchase, but Elco Brandt started closing loss-generating factories in January 2004, dismissing hundreds of employees, including 357 at a plant in France. These steps led to NIS 66 million in one-time charges, which caused the company a NIS 53 million loss for the first nine months of 2004.

Basque cooperative general meetings approve latest business acquisition
General meetings of members at the two cooperatives that make up Basque white line product manufacturer Fagor Electrodomésticos this week approved the planned acquisition by this Mondragon Cooperative Corporation member of fellow household appliance maker Brandt.

Roughly 83 per cent of the 4,000-plus cooperative member owners of Fagor supported the operation, which will enable Fagor to double its size and take up fourth position in the Europe-wide list of white line producers. Officially, Fagor cooperative members agreed to authorise the company to present an 'offer to purchase all the businesses in the Elco-Brandt group and their assets, in the conditions and prices freely agreed with the seller.'

Fagor and Israeli multinational Elco, which still controls 90 per cent of Brandt, had already agreed on terms, which only required the go-ahead from the members’ meeting. Now, under the agreement, Fagor will acquire the French firm outright, at a price apparently oscillating somewhere between 150 and 170 million euros.
Even so, sources close to the operation reckoned the definitive price had still not been set and could well vary from the expected figure.

CaesarStone, the world’s foremost producer of quartz surfaces, has chosen Ebor Equipment, the supplier of machinery, tools and consumables for the stone industry, as its sole importer and distributor for the UK and Ireland. This partnership is almost a natural progression for the two companies, CaesarStone is a ‘Breton Stone’ made on the Breton process using the latest technology Breton machinery – and Ebor is the exclusive UK and Ireland agent for Breton.

The fact that the two companies are a perfect fit has not been lost on Ebor customers, many of who have been pressing them to take up the distributorship for some time. Ebor Equipment is the pre-eminent distributor and supplier of machines and consumables to the flat glass and natural stone industries in the UK and Ireland. The company specialises in the ‘complete supply’. Everything from the smallest tool to the largest machine is available from Ebor’s range of products, including associated expertise. The company’s customer range is equally varied from small family businesses to the largest processors in the sector.

Ebor’s activity in ‘Natural Stone’ covers the supply of machinery tools and consumables. The company’s main focus areas, other than general applications, are to supply the customers whose main involvement is the production of marble and granite tops for kitchens, bathrooms and other domestic/commercial applications, the production of fireplace surrounds in marble, sandstone and limestone and the production of memorial headstones in granite and other materials. This will now be substantially improved through the addition of CaesarStone to Ebor’s portfolio.

As well as in kitchens, bathrooms and bars, quartz surfaces have become popular for fire surrounds and hearths. The market for fireplaces looks set to continue its strong growth with either new build housing or renovation of existing.

Quartz surfaces are entirely imported, the demand is increasing rapidly and CaesarStone is a world market leader. Growth levels for the stone industry in the UK have increased the tendency towards the use of quartz surfaces by architects and designers, and sets a positive outlook for the overall performance of the sector.

In becoming the UK and Ireland partner for CaesarStone, acting as its exclusive importer and distributor in these markets, Ebor is willing to grant CaesarStone Approved Fabricator status to those companies demonstrating their ability to process the material to a high standard.

The exclusive reputation CaesarStone currently enjoys in the UK and Ireland, for quality and consistency of product will be maintained. This exclusive reputation will be achieved by various means, including: architectural specification, technical support and product performance.

Distribution will be effected from Ebor’s Rochdale warehouse (18500 sq ft), which has been adapted, initially, to hold around 2,000 slabs of 20 or 30 mm material.
Ebor Stone Division Director, David Beckett, has worked long and hard with Ebor MD, Stephen Boocock, to secure the CaesarStone agreement, and says ‘We have been able to develop a relationship with CaesarStone, that will greatly benefit all fabricators and processors across a wide range of activities. The ready access to CaesarStone through Ebor will enable them to offer a quality product not previously as accessible in the UK and Ireland.

‘What’s more,’ David Beckett states ‘Ebor will not compete with CaesarStone customers by processing or fabricating, but will complement the sale of CaesarStone by selling associated products i.e. tools and consumables to aid the processing of the material.

‘Our experienced sales and technical team based in both the UK and Ireland will carry out sales and technical support. Sales activity will be targeted directly at fabricators of kitchen work tops, bathroom vanity tops, shop and bar fitters, furniture and fire surrounds. We are also willing to work closely with customers, both in the form of technical support and as a partner to promote the use of CaesarStone, in all its different applications.

‘While promotional activity will aim to attract Architects, Interior Designers, Kitchen and Bathroom Designers, Fire Place Designers and Furniture Designers. This will be done through direct mailing, media advertising and exhibitions. We will also be initiating an intensive campaign to target end-users to create an increased demand from the market.’

http://www.ebor.co.uk

Wolseley plc - Creation of North American Structure and Change in Board Responsibilities

Wolseley plc, specialist trade distributor of plumbing and heating products and a leading supplier of building materials to professional contractors, has announced the creation of a new North American structure and a change in Board responsibilities.

With effect from 1st August 2005, Wolseley's North American structure will bring about a closer relationship between the businesses, develp more shared branches, develop and use a common infrastructure and offer customers a unique proposition/service in North America.

Chip Hornsby, currently Chief Executive of Ferguson, will take over the role of Chief Executive North America, while retaining his role as President and Chief Executive Officer of Ferguson Enterprises. To support Chip Hornsby, Ferguson Enterprises are appointing John Stegeman as Chief Operating Officer. John Stegeman has been with Ferguson Enterprises for 19 years and for the past four years has been Senior Vice President of the Waterworks business.

Fenton Hord will continue to be Chief Executive of Stock Building Supply and continue to serve on the Board of Wolseley plc. Paul Lachance will continue to be Chief Executive of Wolseley Canada. Both positions will report to Chip Hornsby in the new structure.

Other senior appointments for Wolseley North America include: Dave O'Halloran, Chief Finance Officer; Tom Mitchell, Senior Vice President Acquisitions; Frank Roach, Senior Vice President Business Groups; Larry Stoddard, Senior Vice President Business Development; John Wilcox, Senior Vice President Alignment and Coordination; Jim Feltman, Senior Vice President Strategic Planning; Al Byrd, Senior Vice President Supply Chain; Mike Brooks, Vice President Information Technology.

The Group sees many opportunities to: leverage the resources and infrastructure available in North America to the benefit of each of the business units; achieve significant growth objectives; and improve trading margins. Wolseley North America's management team will focus on strategic planning, managing the assets (including the distribution centre network and supply chain) and growing the business, both through acquisition and by organic means.

Charlie Banks, Group Chief Executive of Wolseley said:
'Wolseley has made enormous progress in developing the North American businesses over the past few years through acquisition and organic growth. We have a market leading presence in our business areas which provides a unique foundation on which to build an integrated North American business. Chip has done a fantastic job growing Ferguson and he now has the opportunity to combine the strengths and resources of our three businesses to drive our growth going forward.'

Uform Opening New Doors

Uform was established in 1993 by the Donnelly family to manufacture and supply kitchen doors and components. The company quickly experienced growth through ongoing research, development and expansion of its product offering at the same time as satisfying customers with ongoing quality and on-time deliveries.

Eleven years on, led by a driving force and commitment, the company now says that it leads the market in Ireland and has expanded dynamically into the UK marketplace. The company now employs 70 people on its current site at Station Road in Magherafelt.

Dedication and strategic forward thinking ensure nothing stands still at Uform and 2005 is certainly set to be no different. A new 8-acre site in Toomebridge has now seen work commence on the first phase of a 60,000 sq ft purpose-built manufacturing and fully automated distribution facility. The new premises will be ready for occupancy in July 2005 and will have a dedicated Design Centre of Excellence, as well as an extensive new product showroom.

Eamon Donnelly, Uform Managing Director states, ‘The first phase £3.5 million investment will help us achieve the goal of doubling our capacity and greatly expand the product offering to our customers. There will also be a huge emphasis on product design, customer training, quality, on-time delivery and traceability. Our driving focus very much hinges on the principle of constant research and development. By leading the way with new products we enable all our customers to maximise design and added value potential wherever possible’.

The new premises will provide a plethora of new facilities. One of which will see Uform taking on the role of a training provider to the kitchen retail and manufacturing sector - an industry first. The new factory incorporates two dedicated training suites, offering retailers technical and product advice as well as key merchandising and sales skills. A state of the art design centre, which customers will be encouraged to visit, will showcase Uform’s full product portfolio.

Also available will be the new Articad software, leading the way as an effective design interface, which will allow customers on site to create displays and showrooms of appeal and quality. In-depth customer contact will be encouraged as Uform build partnerships and strengthen relationships at every level.

Eamon Donnelly (MD) added, ‘The introduction of a fully automated warehouse will drive down transfer times and improve on order fill rates, permitting Uform to service our customers’ needs more efficiently, by offering more choice more often.’

Uform’s philosophy of ‘investing in people and equipment to put our customers at the forefront of all decisions and through constant research and development, supply new and innovative quality products complete, on time, every time’ will ensure continued success. We are all very excited about the future and the changes that will take place in 2005’.

Web: http://www.uform.co.uk

Bathroom manufacturer, Shires Bathrooms, has implemented a new brand strategy in order to reinforce the overall product range for the retail sector, giving an enhanced core product and creating an even stronger 'Shires Bathrooms' brand.

Key aspects of the product harmonisation plan include:
Incorporation of Visions brand into the Shires brand in order to create a greatly expanded retail range for Shires customers.
* Icon, Juno, Firenze and Largo suites relocated to Shires as well as the Visions standard bath, Caprino bath and Neo and Zola chrome brassware.
* 20% price reduction on Icon vitreous china products, toilet seat and pedestal ring in order to give a competitive edge.
* Juno range enhanced with the addition of a wall hung pan and two semi-pedestals (compact and large) to increase market opportunity.
* Visions range of furniture transferred to Shires and re-named Icon Furniture.
Trent Bathrooms will continue as a popular and successful brand with its own unique qualities and will be boosted by the addition of two new suites in the near future.
* Existing Corinthian, Halcyon, Aspen and Napoli suites within Trent have been incorporated into the Shires brand together with Helix and Gerona brassware.

Kenny Cameron, General Manager of Shires Limited comments; ‘Shires Bathrooms has a deserved reputation as a long-standing, successful brand but these product adjustments will really strengthen the overall brand offer. We want to make sure our customers have access to exciting product portfolios and these improvements to Shires and Trent ranges are designed to give them a complete bathroom collection, grouped under two core brands.’

Paul McClintock, Sales and Marketing Director of Shires Limited adds; ‘We can now offer our customers a greater product range which maximises their sales opportunities. The new Shires Bathrooms consumer brochure and price list will be available soon to support this.’

To receive a list of all the new and discontinued product ranges, please contact, Shires Bathrooms on 01274 846442.

KBSA Announces Part P Training and Assessment from NICEIC Domestic Installer Scheme

The KBSA has announced details of a programme of assessment and training, which offers retailers a clear route to self-certification under the requirements of the new Part P legislation.

‘Members can now go on-line and find out how to apply to NICEIC on the KBSA website,’ says KBSA Chief Executive Graham Hayden.

‘We have worked alongside NICEIC to develop this fast track solution for KBSA members that includes special rates for courses only available through the key account arrangement that we have established with NICEIC.

‘Members who employ fitters who have experience of electrical work but no formal qualifications can attend a new five day training course run by NICEIC. This course is offered alongside other shorter courses for fitters who may already have some qualifications.’

In addition to the training courses the NICEIC offers a welcome pack on application that includes advice on how to meet the requirements of the scheme, certification, insurance and on –site assessments.

The NICEIC can also arrange for on site assessment and provide a testing kit.
‘The key account arrangement we have established with the NICEIC offers members a clear route to registration at a reasonable cost. Additional benefits include ongoing support, priority bookings for training and options for group training sessions at KBSA head office,’ adds Graham.

‘We would urge all members to visit our website and begin this process as soon as they can. Despite the problems caused by the Government bringing in this legislation too quickly, this should be viewed as a positive opportunity. Members will be able to promote their compliance and offer the customer extra comfort that they are dealing with a professional company rather than a rogue trader.’

Further information on http://www.kbsa.co.uk

Local customers enjoyed opening celebrations at the new Reflections bathroom showroom recently, including a most unusual quiz - the contestants had to stand in a shower cubicle and answer soapy questions.

Reflections Manager Jackie Norburn explains, 'It was a fabulous day, the shower competition being the real highlight.' The contestants were finalists from a competition run on Minster FM. The radio station then came to the store for the live final, with the lucky winner taking home a bathroom suite. The lucky winner, Stuart Hibbard was delighted to have won. 'I couldn’t have wished for a better prize, as I’ve just ripped out my old bathroom suite and needed a new one. This has come at just the right time,' said Stuart.

As well as the quiz, those attending enjoyed refreshments, competitions, and music from Minster FM. 'I was so busy that I missed most of it though,' laughs Jackie.

The Reflections showroom was previously owned by BMB, and was also managed by Jackie. 'I’ve been here for 15 years,' she says. 'And I was a little bit nervous about all the changes, but I love it. We’ve been totally refitted, and the range of stock we’ve got now is superb. Having been here for so long I know my customers well, and I’m sure that our new showroom will give them exactly what they want.'

With the re-fit, prominent location and easy parking on Fawcett Street, Jackie is confident that the new venture will be a success. 'I’m feeling very optimistic. I think that the showroom looks great, but the best part of the day was hearing my customers say that they thought it looked lovely too.'

The Reflections showroom is at Waterloo House, Fawcett Street, York, Y10 4AJ. Tel. 01904 615478

James Latham has declared its support for Congolaise Industrielle des Bois (CIB), a forest operation in Congo Brazzaville, by signing a contract to stock the first FSC certified wood from a large sawmill operation in Central Africa.

The deal, to support the biggest tropical FSC-certification process in history was announced at a recent conference attended by more than 40 James Latham sales staff.

Lucas Vanderwalt, environmental coordinator of the TT Timber Group, with CIB which is the group’s main operation in Africa, spoke of the enormous challenges facing CIB in meeting the exacting FSC requirements.

While Lathams is already acquiring some of CIB’s legal and traceable timber with independent third party certification by the Société Générale de Surveillance (SGS), it is now also backing the independent certification of the sustainable forest practices of CIB.

As Scott Poynton of the Tropical Forest Trust explained during his presentation, the CIB sustainable forest practices include close co-operation with many Non Governmental Organisations (NGO’s) including the Wildlife Conservation Society (WCS), Deutsche Gessellschaft fur Technische Zusammenarbeit GTZ and SGS, which operates the Qualifor Auditing Programme.

Peter Latham, Director of James Latham said, ’We are delighted that a major trading partner in tropical timber is so close to achieving FSC Certification. While Lathams is already purchasing SGS certified legal material, it had appeared that particular difficulties in the tropics would delay FSC implementation for the immediate future. But with the investments made by CIB and partners we hope to have FSC material available by early 2006.

’This will give our customers a significant advantage in the marketplace‘, he added.

As part of the programme, a 35-year forestry cycle will be used which will produce a number of less well known species in addition to the established species of Sapele, Utile, Iroko, Guarea and Koto.

For the movement of fragile or awkward bathroom and kitchen goods, such as worktops, shower enclosures and profiles, you need someone who’ll ‘handle with care’. The services offered by logistics management company, Caretakers, have been extended to encompass the full range of warehousing facilities, including pick & pack. Caretakers, which specialises in the movement of fragile and awkward goods, is able to offer its extended services as a result of its expansion into new warehouse premises at its Doncaster depot. The new premises offer 5000 square metres of storage space, which is fitted out with purpose-built racking to suit the requirements of individual customers. To aid the speed and accuracy of its pick & pack service, Caretakers employs the latest bar-coding technology in its stock control processes.

One of the companies taking advantage of Caretakers' pick & pack service is bathroom products distributor, Norske Interiors. On behalf of Norske, Caretakers stores a comprehensive stock of wall panels, which are drawn off as required and distributed to Norske's nationwide network of retailers. In addition, purpose-made racking has been built to stock the large range of profiles which complement Norske's wall panels.

Caretakers' expertise in handling fragile and awkward goods was the primary reason for its appointment by Norske Interiors. The company's experience in the movement of fragile and awkward goods has been built up through the handling of such diverse products as mirrors, glass furniture and shower enclosures.

Tel: 01472 266606
Email: mailto:caretakers@thbrown.co.uk

The OFT has refused the application for a consumer credit licence from an Aylesbury plumber.

Gareth John Knell, trading as G K Plumbing & Heating, had his application refused by an adjudicator on the grounds that he had committed two offences of making false statements under the Trade Descriptions Act 1968.

Additionally a number of customers took action to obtain county court judgments against Mr Knell for failing to carry out work with reasonable care and skill; charged more than a reasonable rate for goods and services; failed to rectify problems after complaints from consumers; failed to make a refund as agreed and failed to pay for goods and advertising which had been supplied to him.
An adjudicator therefore decided that the applicant was unsuitable to provide credit to consumers and rejected the application.

In considering fitness, the OFT takes into account a number of factors carried on by the business or anyone involved in running the business including:

* any offence or conviction of violence or dishonesty
* failure to comply with the provisions of the Consumer Credit Act or other consumer protection legislation
* consumer complaints
* evidence of unfair business practice
* evidence of discrimination on grounds of sex, colour, race or ethnic/national origin.

Christine Wade, Director of Consumer Regulation Enforcement, said:
'Due to this long list of unfair and improper business practices combined with offences of making false statements, it is not appropriate for this trader to be allowed to offer credit services to the public.'

Manufacturer of domestic fans, Manrose Manufacturing Limited, has just released its new price list containing over 1,200 products. Issue 5 also contains information on 268 new lines, including fans, ventilation equipment and accessories for a whole host of applications in domestic, commercial and industrial situations.

The 56 page price list has been designed to be quick and simple to use and, when used in conjunction with the Manrose product catalogue, provides the perfect tool for the contractor. For your copy please contact mailto:sales@manrose.co.uk

De-listing of ADRs from NASDAQ and of Euro Denominated B-shares in Stockholm

As previously announced, Electrolux has decided to delist its American Depository Receipts (ADRs) from the NASDAQ Stock Market in the US. The de-listing will be effective as of March 31st, 2005.

Electrolux has also decided to de-list its euro denominated B-shares from the Stockholm Stock Exchange. The turnover in these shares is not deemed to justify the costs associated with the listing. The last day of trading in the euro denominated B-shares will be March 31st, 2005.

In connection with the de-listing, the euro denominated B-shares will be converted to ordinary SEK denominated B-shares. The shares will automatically be available for trading in SEK on the Stockholm Stock Exchange from April 1st, 2005. The de-listing and conversion will be made free of any Swedish stock market or securities depository fees or charges for the affected shareholders.

The Electrolux Group is the world's largest producer of powered appliances for kitchen, cleaning and outdoor use, such as refrigerators, washing machines, cookers, vacuum cleaners, chainsaws, lawn mowers, and garden tractors. Every year, customers in more than 150 countries buy more than 55 million Electrolux Group products for both consumer and professional use sold under famous brands such as AEG, Electrolux, Zanussi, Frigidaire, Eureka and Husqvarna. In 2004, Electrolux had sales of SEK 121 billion and 72,000 employees.

Web: http://www.electrolux.com

Change of Sanitec's President and CEO

Dr. Rainer S. Simon, BC Partners and EQT have agreed that Rainer S. Simon will leave his position as President and CEO of Sanitec at the closing of the sale of Sanitec Corporation by funds advised by BC Partners to the EQT IV fund.

As of the closing of the transaction, Mr Lennart Sundén will follow Dr. Rainer Simon as new President and CEO of Sanitec Corporation. Lennart Sundén is Swedish and was born in 1952. From 1977 until 1998 he worked in various positions at Electrolux, including President of Floor Care and Light Appliances in 1993-1998. In 1998-2004 he held the position of President and CEO of Swedish Match AB.

Web: http://www.sanitec.com

Sanitec to Produce Bathroom Ceramics in Russia through Joint Venture

On 17th March 2005, Sanitec Corporation signed a Letter of Intent with the Russian SAVVA Group, to establish a joint venture between Sanitec and SAVVA's subsidiary, Santek, in the production and sales of bathroom ceramics in Russia.

The Letter of Intent calls for the parties' joint development of two ceramics factories in Russia. The existing Santek factory is situated in Cheboksary and has an annual production capacity of about half a million ceramic pieces. A new factory under construction in Novochebksarsk will have a capacity in excess of one million pieces. The new plant is planned to be on stream in summer 2005. Both factories will be capable of supplying products according to both Sanitec's and Santek's needs and specifications.

'This investment is an important part of our Russian strategy and aims to establish a leading position for Sanitec in the Russian market,' says Pertti Lehti, Executive Vice President. In 2004, Sanitec produced approximately 13 million ceramics pieces in 17 ceramic production plants, mainly located in Europe.

The SAVVA Group is currently active in the design, production, marketing, sales and distribution in Russia of bathroom ceramics products under the Santek brand, as well as in ceramic tiles throughout Russia.

Russia is a growing market and important focus for Sanitec
Currently Sanitec markets its ceramics products in Russia under the Ido, Ifö and Kolo brands, and holds approximately 6% share of the Russian ceramics sanitaryware market.

'Russia is an interesting market for us; it is closely connected to the European market and there is significant potential for growth over the next years. Given our strong market position in Europe, it is logical now to focus on a market like Russia,' says Johan Nilsson, Senior Vice President, North East Europe.

'In 2004 we strengthened our sales and marketing organisation in Russia and in 2005 we will participate in the first industrial investment together with Santek. During 2005 we will also implement new logistic solutions to further improve the level of service to our customers,' says Pertti Lehti with regard to Sanitec's future plans in Russia.

Web: http://www.sanitec.com

The general meeting of shareholders of the company to be held on April 27th will get a proposal to pay dividend to shareholders in the amount of 6 cents per share worth LTL 1 by nominal value, allocating a total amount of LTL 1.384 m for dividend payment