Despite recent challenges, Quanex Building Products Corp. announced that its bid to acquire Tyman plc is progressing smoothly. Officials said both companies’ shareholders approved the proposed acquisition. The approval follows a revised deal through which Quanex agreed to pay Tyman shareholders a special dividend, easing concerns over the company’s stock price and adverse movement in dollar to pound exchange rates.
“On behalf of our board of directors and executive management team, I would like to thank Quanex and Tyman shareholders for their support as we move swiftly towards completing the transaction and creating a comprehensive solutions provider in the building products industry,” said George Wilson, Quanex chairperson, president and CEO. “We continue to prepare internally for the upcoming integration of our two companies and we look forward to working alongside our talented colleagues at Tyman following the close of the transaction. Once combined, we expect to deliver unparalleled value to our customers, employees, and shareholders.”
Tyman shareholders will receive either a mix of 240 pence in cash and 0.05715 shares of Quanex common stock for each Tyman share, or a capped all-share alternative of 0.14288 shares of Quanex common stock per Tyman share. The capped all-share alternative will be subject to proration if more than 25% of the outstanding Tyman shares elect to receive it. Tyman shareholders, upon the closing of the transaction, will also receive a special dividend of 15 pence in cash. Upon closing of the transaction and subject to the elections made by Tyman shareholders, Tyman shareholders will own approximately 30-32% of Quanex on a fully diluted basis.
The acquisition remains subject to the satisfaction of customary closing conditions and is expected to close in August 2024.