- Tyman will become the latest company to delist following the US acquisition.
Tyman saw its shares soar on Monday after the London-listed window and door supplier revealed an agreed acquisition deal with US-based Quanex Building Products.
The cash and shares deal, which values the British company at around £788 million, will see Tyman become the latest to leave the London Stock Exchange after being bought by a US rival.
Texas-based Quanex’s acquisition of Tyman will also see the closure of its London head office, but the group said it would not close any manufacturing plants in the UK.
The deal will be a cash and stock deal that will value the British company at around £788 million.
Tyman shares jumped 30.41 per cent to 386 pence in early afternoon trading.
Upon completion, Tyman will be a wholly owned unit of Quanex, which is listed on the New York Stock Exchange.
The deal will see Tyman shareholders get 240 pence in cash and 0.05715 new Quanex shares for each Tyman share they own.
The offer represents a premium of around 35.1 per cent to Tyman’s Friday closing price of 296p.
An alternative offer was also put forward in which Tyman shareholders would receive Quanex shares at a ratio of 0.14288 of one new Quanex share for each Tyman share they own.
The acquisition comes at a time when home builders in the United States have decided to reduce prices due to higher mortgage costs, which has created problems for first-time buyers.
Nicky Hartery, non-executive chairman of Tyman, said: “This transformative and complementary transaction will strengthen the expanded business for the benefit of all our customers, employees and other stakeholders.”
“In the context of a rapidly evolving North American market, our board ultimately determined that this transaction is the best path to maximizing value for Tyman shareholders, who will be able to realize a significant portion of their stake in cash at a significant premium to the current share price and at the same time participate in the bullish future of the enlarged group.
Commenting on the potential deal, which already has the support of Tyman’s 16.4 per cent shareholder Teleios, analysts at Peel Hunt said there may be opposition from shareholders.
They say: “While the headline bonus will no doubt be attractive to some shareholders, we would not be surprised to see some holding out for a better offer.”
