Deloitte Legal advises Panaria Group on the acquisition of significant parts of insolvent Steuler Fliesengruppe

As part of the deal, Panaria is taking over the entire Leisnig plant, all brands and the group's sales and administrative structure in Bremen. This means that Panaria will be able to count on one of the strongest sales structures for ceramic surfaces and home ceramics in the German market in the future.

With a turnover of around EUR 500 million, plants in Italy, Portugal, the USA and India and a sales presence in over 130 countries, the family-owned company Panaria is one of the world market leaders in the production and distribution of high-quality ceramic surfaces for floors and wall coverings.

As Germany's largest manufacturer of residential ceramics, the entities of the Steuler Fliesengruppe had to file for insolvency in self-administration at the beginning of July 2023. In addition to the headquarters in Bremen, the group included the three production sites in Bremerhaven, Mühlacker (Baden-Württemberg) and Leisnig (Saxony). According to the company, the reasons for the insolvency were extremely high energy prices and weak sales figures, which fell further in June due to the crisis in the construction industry.

The acquisition of significant parts of the Steuler Fliesengruppe marks another building block in Panaria's international expansion strategy. "This acquisition is a significant step for our group", says Emilio Mussini, CEO of the Panaria Group "We are looking forward to a successful cooperation with our new colleagues and want to inspire the German market with an even broader product range, highest quality and best customer service. Deloitte Legal managed to develop an acquisition strategy with us in a very short time and to implement it under the highest time pressure. The excellent cooperation and professional expertise was crucial for the success of the complex transaction."

Deloitte Legal's cross-office team provided comprehensive advice on all issues essential to the success of the transaction, once again demonstrating the firm's strength in distressed M&A. The members of the team were able to draw on their experience from numerous jointly supported transactions; the well-coordinated cooperation between experts from the areas of M&A, business recovery and labour law ensured a swift and efficient conclusion of the transaction.

Advisor Panaria Group:

Deloitte Legal Germany: Dr. Michael von Rüden (Partner, Lead, Corporate/M&A), Frank Tschentscher, LL.M. (Partner, Lead, Business Recovery), Dirk Hänisch, LL.M. (Partner, Corporate/M&A), Thilo Hoffmann, LL.M. (UoB) (Partner, M&A), Dr. Charlotte Sander (Partner, Employment Law), Felix Skala (Partner, Antitrust), Christoph Meves (Counsel, Corporate/M&A), Claus Wilker (Counsel, Employment Law), Marcus C. Spangenberger, M.B.L. (Senior Associate, Business Recovery), Katharina Zickermann (Counsel, Antitrust)

Chiomenti, Milan: Manfredi Vianini Tolomei, Mario Pelli Cattaneo , Barbara Ballandi (all Corporate/ M&A)

_{Published: October 2023}