Australian household consumer products maker GWA Group has offered to acquire New Zealand-based Kiwi tapware maker Methven in a $118 million deal.
Under the terms of the deal, GWA will pay for Methven’s units at $1.60 per unit, representing a 39 percent premium.
With this acquisition, GWA will boost its earnings by a mid-single digit in 2020. GWA said it expects to cut duplicated costs by about $5m by the 2021 financial year.
Subjected to Methven’s shareholder approval, the deal is expected to commence in March next year.