04 / 12 / 2023
Kohler Expands Wellness Portfolio with Acquisition of KLAFS from Egeria Group
KOHLER, Wis. – December 4, 2023 – Global kitchen and bath leader Kohler has entered into a definitive agreement to acquire KLAFS – a market-leading manufacturer of saunas, steam rooms, and other hydrothermal features – from the Egeria Group.
The agreement was signed on Dec. 1, and is still subject to customary closing conditions. Final closing is expected in the first quarter of 2024. Financial details of the transaction are not being disclosed.
KLAFS CEO Phillip Rock and CFO Jens Friedrich will continue in their leadership roles, and the company will join Kohler’s Luxury Brands division with other high-design brands including ANN SACKS, KALLISTA, Robern, and Kast Concrete Basins.
Headquartered in Schwäbisch Hall, Germany, KLAFS develops, designs, manufactures, and sells innovative premium wellness products designed to enhance personal spa experiences including saunas, sanariums, infrared cabins, steam baths, pools, and related wellness equipment and accessories. In addition, the company provides consultation and planning services. KLAFS sells its products through a vast direct-to-consumer showroom network that primarily spans across Europe to both residential and commercial (incl. hotels, fitness centers, day spas, etc.) clients.
KLAFS employs 850 associates across locations in Germany, Switzerland, Austria, Poland, Netherlands, U.K., Spain, and Mexico.
“As a privately held, global company celebrating our 150th anniversary, Kohler has always embraced a relentless pursuit of providing exceptional products, services, and experiences for our customers,” said David Kohler, Chair and CEO of Kohler Co., who represents the fourth generation of Kohler family leadership. “KLAFS is an international market leader with a stellar reputation that shares our passion for innovation and delighting customers. We look forward to welcoming the KLAFS organization to Kohler and, together, driving continued growth in sauna and spa solutions.”
Hannes Rumer, Partner and Managing Director at EGERIA in Munich: “Over the last years we have worked with CEO Phillip Rock and the entire team at KLAFS on transforming the company from a strong player in Germany, Austria, and Switzerland to a pan-European market leader for premium sauna, spa, and wellness products. It has been a great entrepreneurial team-up and we are especially proud of the successful roll-out of KLAFS’ exciting product portfolio in Northern and Western Europe, both organically and through several acquisitions. Kohler is the ideal partner to maintain the high-end positioning of the brand.”
Phillip Rock, CEO of KLAFS: “With their commitment and dedication, our employees have made KLAFS a globally recognized brand. With Kohler behind us, we will open new doors and take our success story to a new level.”
Houlihan Lokey (M&A), Menold Bezler (Legal), and RSM Ebner Stolz (Financial & Tax) are advising Egeria. Eversheds Sutherland (Legal) and Deloitte (Financial, Tax & HR) are advising Kohler.
About Kohler Co.
Founded in 1873 and headquartered in Kohler, Wisconsin, Kohler Co. is one of America’s oldest and largest privately held companies comprised of more than 40,000 associates. With more than 60 manufacturing locations worldwide, Kohler is a global leader in the design, innovation and manufacture of kitchen and bath products; luxury cabinetry, tile and lighting; engines, generators, and clean energy solutions; and owner/operator of two, five-star hospitality and golf resort destinations in Kohler, Wisconsin, and St. Andrews, Scotland. Kohler’s Whistling Straits golf course hosted the 43rd Ryder Cup in 2021. The company also develops solutions to address pressing issues, such as clean water and sanitation, for underserved communities around the world to enhance the quality of life for current and future generations. For more details, please visit kohlercompany.com.
KLAFS has been creating places of relaxation for body and soul since 1928. Time and again, the company manages to surprise with groundbreaking innovations – such as the space-saving sauna KLAFS S1, which transforms from the size of a wall cabinet to a fully functional sauna within 20 seconds at the push of a button. Thanks to this innovative strength, KLAFS advanced from what was once a small family business to a global industry leader. Today, more than 850 employees work to meet – and exceed – the ever-increasing demands of customers. From small private sauna rooms to luxurious hotel spas. And they do this all over the world, with expert advice from carefully trained technical consultants and on-site service from experienced teams. As a trendsetter in the sauna, pool and spa industry, KLAFS continuously invests in research and development, for example to further increase the energy efficiency of its products.
Egeria is an independent pan-European investment company founded in 1997, which focuses on medium-sized companies. Egeria invests in healthy companies with an enterprise value between EUR 50 million and EUR 350 million. Egeria believes in building great businesses together with entrepreneurial management teams (Boldly Building Together). Egeria Private Equity Funds hold investments in 16 companies, Egeria Evergreen has investments in 7 companies. Egeria’s portfolio companies have a combined turnover of c. EUR 2.5 billion and employ close to 13,000 people. Other activities are Egeria Real Estate Investments and Egeria Real Estate Development. In 2018, Egeria has launched EgeriaDO, a corporate giving program sponsoring projects in the fields of the arts, culture, and social objectives.