BENGALURU: U.S.-based Quanex Building Products will buy doors and windows supplier Tyman in a cash and share deal that values the British firm at about 788 million pounds ($976 million), the companies said on Monday.
Tyman shares surged 25% in early trade.
The acquisition comes at a time U.S. housebuilders are cutting prices and offering other incentives to increase sales amid hurdles created for many first time buyers by higher mortgage rates.
Tyman joins a growing list of companies leaving the London stock market, after Britain’s biggest chip company ARM floated in New York last year, and building supplies firm CRH and plumbing equipment company Ferguson shifted their main listings to the United States.
Under the terms of the deal, Tyman shareholders will get 240 pence in cash and 0.05715 of a new Quanex share for each Tyman share held.
The offer represents a premium of about 35.1% to London-listed Tyman’s Friday closing price of 296 pence.
The main offer comprises about 60% by value in cash and the rest in new Quanex shares, while an alternative offer gives the option to get the consideration at a ratio of 0.14288 of a new Quanex share to every one Tyman share held.
The companies said Tyman will become a wholly-owned unit of Quanex following the completion of the transaction.
Quanex and Tyman directors intend to unanimously recommend their shareholders to vote in favour of the proposed deal.
Quanex directors said…
