Japanese corporation LIXIL Group will sell all of its shares of global glazing contractor Permasteelisa to China-based Grandland Holdings Group Limited, the companies announced Monday. The transaction is valued at approximately $550.2 million.

In a letter to shareholders Monday, LIXIL president Kinya Seto said that despite Permasteelisa’s strong market presence worldwide, “there are many differences between Permasteelisa and LIXIL’s businesses in terms of management, especially in its cycle of businesses and the types and range of risks. For this reason, we concluded a contract for the share transfer of Permasteelisa to Grandland, which is a leading high-quality and service oriented architectural decoration enterprise in China.”

According to the notice, the transaction is subject to customary closing conditions and regulatory approvals in China, the United States and Russia.

Grandland said in an announcement that Permasteelisa will be managed as a separate business entity, and its headquarters will continue to be based in Vittorio Veneto, Italy. Permasteelisa CEO Riccardo Mollo has also been confirmed by Grandland to remain in his position, and the rest of Permasteelisa’s top management will be retained.

“Combining Permasteelisa’s position as a premium leader in the market and its scale across EMEA, North and South America as well as parts of Asia, along with Grandland’s industrial integration capabilities and strength in China, will create an even a bigger player in the curtainwall segment globally,” Mollo said in a statement. “While Permasteelisa will maintain its operating independence, the opportunities for operating synergies with Grandland are tremendous.”

Grandland, based in Shenzhen, generated sales of approximately 1.63 billion in 2016.