New Zealand-based brassware manufacturer Methven has entered a negotiation for the sale of the company to Australian kitchen and bathroom group GWA Group.
Following a Scheme Implementation Agreement, it would see GWA purchasing all of the shares in Methven, subject to shareholder and court approval.
If approved, it will bring together some of Australia and New Zealand’s biggest kitchen and bathroom brands.
Martin Walker, CEO of Methven UK, commented: “This is a very exciting opportunity, as the combination of two very strong businesses and their associated brands offer enhanced opportunities for our customers worldwide.
“GWA and Methven are businesses that are very much aligned in terms of our vision, culture, ambition and the way we operate in our respective markets.
“As a company, we have invested significantly in recent years to increase both our manufacturing capability and our research and development centre in New Zealand.”
He continued: “Following the successful implementation of this investment, the business has also been reviewing several strategic initiatives designed to accelerate business growth.
“We believe the synergies and combined expertise of GWA and Methven will help us to achieve this objective quickly, with significant growth opportunities for both the UK market and our global operations.”
A key aspect of the proposed agreement is the commitment by GWA to maintain manufacturing, research and development in New Zealand.
This will result in Methven’s research and development centre becoming the innovation hub for the enlarged group.
Earlier this year, Methven introduced its Aio Rail Shower in a matte black finish.