Quanex Building Products announced it had agreed with Tyman on the terms of a recommended cash and share offer. Under this offer, Quanex will buy Tyman’s entire issued and to-be-issued share capital for about $1.1 billion in enterprise value.
Quanex’s deal to buy Tyman creates a comprehensive solutions provider in the building products industry, which, on a pro forma basis, generated approximately $2 billion of revenue in the fiscal year that ended October 31, 2023. Tyman’s family of brands includes many renowned names that boast wide customer bases. They offer product 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, UK, and Ireland, and international divisions. The combined company will have global scale and leading positions across an enhanced offering of differentiated engineered components.
KEY QUOTES:
“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. 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.”
“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. The industrial logic and strategic rationale of bringing Quanex and Tyman together 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.”
– George Wilson, Chairman, President and Chief Executive Officer of Quanex
“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 group3. 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.”
– Nicky Hartery, Tyman Chairman
