Deva Tap Company Acquired By Methven
Methven, New Zealand’s leading designer, manufacturer and supplier of tap and showerware has entered a conditional agreement to buy The Deva Tap Company for $59 million (NZD). Completion will take place on 31st August this year.
The acquisition will see Methven more than triple its direct distribution for its unique range of showering products through Deva’s trading relationships with most of the UK’s major plumbing and building merchants and DIY groups.
It will also see Lancashire-based Deva – the UK’s largest independent supplier of bathroom, kitchen and shower brassware – become the centre-piece of Methven’s European growth strategy.
Deva in turn will benefit from cost savings in procurement, engineering, quality assurance and product sourcing whilst expanding its product development capabilities across a wider market with selected products going to strengthen Methven’s Australasian offering.
“We have long achieved excellent growth in what is a competitive UK brassware market,” explains Deva Managing Director Rob Pryde.
“Our success is founded on a quality, cost competitive offering and responsive customer service under a capable and committed management team which will remain with the business. And like Methven – whose Australian tap and showerware sales were up 54% for the year ended 31 March 2007 – we too have a sound track record of profitability.
“Methven clearly considers Deva as highly complementary to its existing business and follows our recent exclusive distribution of its revolutionary water saving SatinjetTM shower system earlier this year.”
“We are obviously excited by the new opportunities our acquisition will bring and looking forward to playing a key role in the continued growth of the business.”
Methven Chairman, Richard Cutfield, continues: “As an ambitious growing business, our acquisition of Deva will enable us to further leverage our strategic capabilities in design innovation and branding on an international level whilst increasing shareholder value.”
Cutfield continues: “Our revolutionary patented products – including SatinjetTM – along with our branding and design capabilities will add differentiation and value to the current Deva offering and market proposition in the UK.
The Deva Tap company’s Lancashire headquarters and distribution site will continue to operate under is existing identity and the will be no job losses.
For further information please visit www.devatap.com, e-mail sales@devatap.com or call (t) 0800 195 1602.
For further information about Methven please visit www.methven.biz
