Quanex Building Products Corp. has reached agreement with Tyman on the terms of a recommended cash and share offer, under which Quanex will acquire the entire issued and to be issued share capital of Tyman for approximately $1.1 billion in enterprise value. Tyman's subsidiaries include AmesburyTruth, Lawrence and Bilco.
Goals and rationale of the acquisition
This acquisition aligns with Quanex's "BIGGER" strategic roadmap for growth and value creation. This transaction matches Quanex’s acquisition strategy, and provides exposure to an enhanced product offering and additional markets, moving Quanex closer to its $2 billion revenue target.
It also aims to creates a larger, more diversified supplier of components to OEMs, strengthen brand leadership and enhance financial profile.
What the companies say
“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,” says George Wilson, chairman, president and CEO of Quanex. “With significantly enhanced scale, we are looking forward to fully optimizing our portfolio of products and assets to position Quanex as a comprehensive solutions provider for our customers. Importantly, we expect employees of both companies to also benefit from increased opportunities as part of a larger organization with expanded engineering, design and manufacturing capabilities.”
“This transformative and complementary transaction will strengthen the enlarged business for the benefit of all our customers, employees and other stakeholders. In the context of a rapidly evolving North American marketplace, our board ultimately determined that this transaction is the best path to maximizing value for Tyman shareholders, who will be able to realize a meaningful portion of their holding in cash at a significant premium to the prevailing share price while also participating in the future upside of the enlarged group. Today marks the beginning of an exciting next chapter for Tyman and our talented employees, and we look forward to joining with Quanex to deliver future growth and success,” says Tyman Chairman Nicky Hartery.
