Quanex Anounces $1.1 Billion Acquisition of Tyman PLC
Deal News | Dec 06, 2024 | EIN
Quanex Building Products has successfully closed on the acquisition of U.K.-based Tyman PLC for $1.1 billion as part of a major expansion strategy. The transaction, marking a 35.1% premium over Tyman's stock price, primarily uses committed financing from Wells Fargo Bank, Bank of America Securities, and TD Bank. The deal significantly extends Quanex's international footprint while maintaining its headquarters in Houston, Texas. Quanex's acquisition establishes a substantial presence in the UK and Germany, responding to similar customer bases without much operational overlap. The merger anticipates roughly $30 million in synergies over the following two years, with the companies' combined revenue reaching $2 billion as of fiscal 2023. Teleios Global Opportunities Master Fund, the largest shareholder of Tyman, supports the acquisition and has been granted board observer rights.
Sectors
- Building Materials
- Manufacturing
- Financial Services
Geography
- United States – Quanex, the acquiring company, is based in Houston, Texas.
- United Kingdom – Tyman PLC, the target of the acquisition, is based in the UK.
- Germany – Mentioned as part of Quanex's expanded presence post-acquisition.
Industry
- Building Materials – The article discusses the acquisition of Tyman PLC, a company involved in building materials, by Quanex Building Products.
- Manufacturing – Quanex and Tyman are both engaged in the manufacturing sector, specifically for building products and materials.
- Financial Services – The role of Wells Fargo Bank, Bank of America Securities, and TD Bank in financing the acquisition makes financial services relevant to the article.
Financials
- $1.1 billion – The acquisition price of Tyman PLC by Quanex.
- 400 pence per share – The offer price of Tyman shares representing a 35.1% premium.
- $30 million – Anticipated synergies within the first two years post-acquisition.
- 16.4% – The percentage of Tyman shares previously held by Teleios.
- 3,900 and 3,600 – The respective employee counts of Quanex and Tyman prior to the acquisition.
- $2 billion – Combined revenue for Quanex and Tyman for the fiscal year ending October 31, 2023.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Quanex Building Products Corp. | Acquirer | Company | A Houston-based company specializing in the manufacturing of building products. |
| Tyman PLC | Target | Company | A UK-based company providing hardware and sealing solutions for buildings. |
| Teleios Global Opportunities Master Fund | Other, Largest Shareholder of Tyman | Company | Previously the largest shareholder of Tyman and granted board observer rights post-acquisition. |
| Wells Fargo Bank N.A. | Financing | Company | Provided committed financing for the acquisition. |
| Bank of America Securities | Financing | Company | Provided committed financing for the acquisition. |
| TD Bank | Financing | Company | Provided committed financing for the acquisition. |