Quanex Building Products has acquired London-based Tyman, a supplier of commercial and residential door and window hardware.

Quanex Building Products has acquired London-based Tyman, a supplier of commercial and residential door and window hardware. The acquisition includes a cash and share deal that values Tyman at around $1.1 billion.

Officials say the move enhances Quanex’s product offerings and adds additional markets, helping the company reach its $2 billion revenue target. They add that the acquisition also creates a comprehensive solutions provider in the building products industry, which generated approximately $2 billion of revenue in the fiscal year ending Oct. 31, 2023.

“Our goal remains to ensure that we are delivering our customers a best-in-class offering,” says Scott Zuehlke, Quanex’s senior vice president, chief financial officer and treasurer. “We feel confident that bringing these two teams together is the best way to achieve this.”

Tyman’s family of brands includes door and window companies focused on hardware, commercial access solutions, and seals and extrusions vertical segments for commercial and residential users across North America and Europe. Approximately 72% of Tyman’s revenue is generated from door and window hardware, with another 16% stemming from seals and extrusions and 12% from commercial access solutions. Two-thirds of Tyman’s revenues come from North America, with manufacturers making up 65% of the company’s customer base.

George Wilson, Quanex’s chairperson, president and CEO, says that acquiring Tyman will broaden Quanex’s offering of differentiated engineered components.

“As one company, we will have an enhanced financial profile grounded in attractive margins, strong free cash flow and a healthy balance sheet, enabling us to invest in organic and inorganic growth opportunities to deliver superior returns for investors,” says Wilson. “The industrial logic and strategic rationale for combining Quanex and Tyman are clear and compelling, and we are confident in our ability to drive meaningful value creation for both Quanex and Tyman shareholders and enhanced market offerings for our customer base.”

Under the terms of the deal, Tyman shareholders will be entitled to receive an implied value of $2.96 for each Tyman share (the consideration), 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 $2.96 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 combined company, which Wilson will lead, will have its headquarters at Quanex’s current head office in Texas. The company does not plan to shut down any of Tyman’s manufacturing facilities. The transaction is set to close in the second half of 2024.

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