Quanex Building Products (NYSE:NX) will acquire doors and windows supplier – Tyman (OTCPK:LPUSF) in a cash and share deal for ~$976M.
Tyman shareholders will be entitled to receive an implied value of 400.0 pence for each Tyman share. The offer represents a premium of about 35.1% to London-listed Tyman’s Friday closing price.
Tyman shareholders will have the option to elect to receive the consideration as either a mix of 240.0 pence in cash and 0.05715 shares of Quanex (NX) for each Tyman share.
The combined company is expected to achieve greater scale and reach combined FY 2023 revenues of ~$2B and a higher EBITDA margin pro forma for full cost synergies. Also, the buyout is expected to deliver material EPS accretion in the first year post closing, and ~$30M in annual run-rate cost synergies are anticipated.
Closing is expected in H2 2024.
“This transformative acquisition accelerates our journey to becoming ‘BIGGER’, creating a leading supplier of building products with a more diverse geographic footprint, product offering and customer base,” said George Wilson, Chairman, President and CEO of Quanex (NX).
NX stock price was marginally down by 0.98% on Monday during pre-market trade in the U.S. Tyman shares jumped ~30% on Monday on the London exchange.
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