RAK Ceramics, one of the world's biggest makers of floor and wall tiles, has inked a deal for the sale of its 51 per cent share in its joint venture firm to Laticrete International for Dh48.1 million ($13 million).

The joint venture, RAK Laticrete, was set up in partnership with US-based Laticrete International to manufacture tiling installation systems and waterproofing products and was a successful and profitable business venture for more than 10 years.

Commenting on the move, CEO Abdallah Massaad said: "In 2003, we recognised the potential of Laticrete’s contribution to the Middle East market and hence our joint venture was created. We worked closely with the management to identify potential opportunities which added significant value to RAK Ceramics’ brand name."

"We had a highly successful partnership and we believe that both companies are currently in a win-win situation. RAK Ceramics for receiving a premium on the sale transaction and Laticrete International for buying a valuable company that has been a success story in the industry over the last 12 years," he added.

Erno de Bruijn, the president of International Division of Laticrete, said: "RAK Ceramics has been an excellent partner in the UAE and throughout the region. We made the strategic decision to extend the scope of our activities beyond the world of ceramic tiles and stone."

"Through acquisitions and organic growth, Laticrete has experienced tremendous international expansion and we are confident that by focusing on new product offerings and enhancing our operations in the Middle East we will continue to grow," he added.-TradeArabia News Service