Quanex to Acquire Tyman in ‘Transformative’ £788m Deal

In a significant development within the building products sector, Quanex Building Products Corporation (NYSE: NX) announced it has agreed on a deal to acquire FTSE-250 company Tyman (LON: TYMN).

The “transformative acquisition” is aimed at creating a leading supplier of building products, according to Quanex's CEO George Wilson. The acquisition is valued at approximately £788 million.

Under the terms of the agreement, Tyman shareholders will receive 240p in cash and 0.05715 of a new Quanex share for each Tyman share held, representing an offer that comprises around 60% in cash and 40% in new Quanex Shares. Alternatively, shareholders can elect to receive consideration in Quanex Shares at a ratio of 0.14288 of a new Quanex share for every Tyman share held.

The transaction, subject to shareholder approval and regulatory clearances, is backed by both boards and key shareholders, including an irrevocable undertaking from Teleios Global Opportunities Master Fund. Upon completion, Tyman will become a wholly-owned subsidiary of Quanex, with Tyman shareholders owning approximately 30% and 32% of the enlarged group.

Wilson described the acquisition as accelerating Quanex's journey to becoming a leading supplier of building products with an expanded geographic footprint and customer base. The combined entity is expected to benefit from increased scale, optimised product portfolios, and enhanced financial performance, offering attractive margins and strong free cash flow.

Nicky Hartery, Non-Executive Chair of Tyman, emphasised the strategic value of the transaction for Tyman shareholders, enabling them to realise a significant premium on their holdings while participating in the future growth of the enlarged group.

The transaction is expected to be completed in the second half of 2024. The deal will position Quanex as a “comprehensive solutions provider” with an enhanced financial profile.