Quanex Makes Billion-Dollar Move: Acquires Construction Solution Provider Tyman

Quanex Building Products Corporation NX has reached an agreement to acquire the entire issued and to be issued share capital of Tyman plc for about $1.1 billion enterprise value,

Tyman offers solutions in the window and door hardware, commercial access solutions, and seals and extrusions vertical segments for residential and commercial users across its North America, U.K. and Ireland, and International divisions.

“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 Chairman, President and CEO George Wilson.

“As one company, we will have an enhanced financial profile grounded in attractive margins, strong free cash flow and a healthy balance sheet, that will enable us to invest in organic and inorganic growth opportunities to deliver superior returns for investors.”

Under the agreement, Tyman shareholders will be entitled to receive an implied value of 400.0 pence for each Tyman share based on Quanex’s last closing share price of $34.64 on April 19, 2024.

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 common stock for each Tyman share, or as a capped all-share alternative of 0.14288 shares of Quanex common stock per Tyman share.

The acquisition is expected to be meaningfully accretive to earnings in the first full fiscal year following the completion, taking into account cost synergies.

Upon closure, Tyman shareholders will own between approximately 30% and 32% of Quanex, depending on shareholder elections.

Tyman shareholders will also be approved to get the final dividend of 9.5 pence per Tyman share, as declared by Tyman on March 7, 2024.

The acquisition is expected to close in the second half of calendar year 2024. Quanex held $44.4 million in cash and equivalents as of January 31, 2024.

Price Action: NX shares closed higher by 1.17% at $34.64 on Friday.

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