Tapware manufacturer, Methven, doesn't have a good track record on acquisitions, though it's difficult to say how much of this was the company's fault and how much was due to circumstances beyond its control.
The last significant purchase it made was of the Deva Tap Company, one of Britain's largest independent tap and showerware distributors, for which it paid $59 million in 2007.
The main rationale for that purchase was to use Deva's network to distribute Methven's high-value products, including its proprietary water-saving Satinjet shower ranges.
That hasn't worked very well, although the company has had to contend with the impact of the global financial crisis on the British economy.
Now, Methven plans to pay up to $12.5 million to buy its Chinese supplier, Invention Sanitary, including earn-out provisions.
Chief executive Rick Fala says the circumstances of each acquisition are very different and that the Deva purchase was for turnover.
