Quanex Building Products announced today it will acquire Tyman, a London-based producer of fenestration components and access solutions (including U.S.-based subsidiaries AmesburyTruth, Lawrence and Bilco). With a cash and share value of approximately $1.1 billion, the deal gathers two major suppliers of the door and window industry, with approximately $2 billion of combined revenue in the fiscal year ended October 31, 2023, on a pro forma basis.

“Our goal remains to ensure that we are delivering our customers a best-in-class offering. We feel confident that bringing these two teams together is the best way to achieve this,” said Scott Zuehlke, senior vice president, chief financial officer and treasurer for Quanex.

Quanex provides insulating glass spacers, vinyl profiles, screens, fenestration components, vinyl extrusions, rubber extrusions and millwork. Meanwhile, approximately 72% of Tyman’s revenue is generated from door and window hardware, with another 16% stemming from seals and extrusions and 12% from commercial access solutions. Two-thirds of Tyman’s revenues come from North America, with manufacturers making up 65% of the company’s customer base.

“We will be able to deliver an enhanced offering of differentiated components to our customers,” said George Wilson, chairperson, president and CEO of Quanex.

Wilson said the acquisition accelerates the company’s “journey to becoming ‘bigger,’” extending and diversifying its geographic footprint, product offering, and customer base, adding, “… it is fully aligned with our bigger strategic roadmap, which we will continue to execute upon.”

With 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,” Wilson said. “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.”

Regarding the combined financial profile, Wilson said it would be grounded in “attractive margins,” strong free cash flow, and a healthy balance sheet. As a result, Quanex will be able to invest in organic and inorganic growth, he said.

“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,” Wilson said.

Tyman’s chairperson, Nicky Hartery, said his company’s board determined the transaction to be the best path forward for maximizing value for 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 group.”

Following the acquisition, Tyman shareholders will own between approximately 30% and 32% of Quanex.

The transaction is set to close in the second half of calendar year 2024 and to be meaningfully accretive to earnings in the first full fiscal year following, taking into account cost synergies. It is expected to result in recurring pre-tax cost synergies of approximately $30 million on an annual run-rate basis within two years after closing.

The acquisition isn’t subject to any financing contingency, with fully committed financing from Wells Fargo Bank, N.A., Bank of America Securities and TD Bank.

When [DWM] reached out to Quanex to request additional input regarding employees and impacts to the North American market, the company declined to comment.

1 Comment

  1. They decline to comment because they do not care one once for the employees that have lost their jobs to make this deal happen. Horrible company to work for.

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