US-based Quanex to acquire UK-based Tyman in $976 million cash-and-stock deal By Reuters
Avi Jose Coilparamville
(Reuters) – U.S.-based Quanex (NYSE:) Building Products will acquire door and window supplier Tyman in a cash-and-stock deal that values the British company at about 788 million pounds ($976 million). ), the two companies said Monday.
Tyman shares were trading 30% higher as of 0844 GMT.
The acquisition comes at a time when U.S. homebuilders are offering incentives to cut prices and boost sales as high mortgage rates drive away many first-time buyers.
Tyman joins a growing number of companies leaving the London stock market after ARM, Britain’s largest chip company, listed in New York last year, and building materials company CRH (NYSE:) and plumbing equipment company Ferguson moved their major listings to the United States. joined.
Under the terms of the deal, Tyman shareholders will receive 240 pence in cash and 0.05715 new Quanex shares for each Tyman share.
The bid amount is equivalent to 400 pence per share, a premium of about 35.1% to London-listed Tyman’s Friday closing price of 296 pence.
“Considering reasonable valuation and industrial feasibility,
“Given the strategic and financial logic of the merger, we expect the transaction to be completed by the end of this year,” Investec analysts said.
Quanex and Tyman directors plan to unanimously recommend that shareholders vote in favor of the proposed transaction.
Tyman’s largest shareholder, Teleios Capital Partners, which holds a 16.4% stake, supported the Quanex proposal.
Quanex directors said they believed the acquisition would help create a more diverse supplier in the building materials sector.
Quanex expects $30 million in operating cost synergies to be fully realized within two years following completion of the transaction.
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The Texas-based company also said in a joint statement that Tyman will be delisted from the London Stock Exchange and the combined group will be listed on the New York Stock Exchange.
($1 = 0.8077 pounds)
