The Zhitong Finance App learned that the US construction products company Quanex (NX.US) said on Monday that it would buy door and window supplier Tyman in cash plus shares. The deal valued Tyman at around £788 million (US$976 million).
This price is about 35.1% higher than the closing price of the London-listed company Tyman of 296 pence last Friday, and Tyman's stock price surged 25% in early trading.
The acquisition comes at a time when rising mortgage interest rates are hurting many first-time buyers, and US homebuilders are cutting prices and providing other incentives to increase sales.
Following the listing of ARM, the UK's largest chip company, in New York last year, and construction supplies company CRH and plumbing equipment company Ferguson to move their main listing locations to the US, Tyman has joined a growing number of companies leaving the London stock market.
According to the terms of the deal, for every Tyman share held, you will receive 240 pence in cash and 0.05715 new Quanex shares.
In terms of value, the main offer included around 60% of the cash, with the rest being Quanex's new shares, while the other offer offered the option of receiving consideration for Quanex's new shares at a rate of 0.14288 shares per share.
The two companies said Tyman will become a wholly-owned subsidiary of Quanex when the deal is completed.
The directors of Quanex and Tyman intend to unanimously recommend that shareholders vote in favor of the proposed deal.
Quanex directors said they believe the acquisition will help create a more diversified supplier in the field of construction products, particularly in the North American door and window design business.
Quanex anticipates that the expanded scale after the merger will result in higher core profit margins and a full operating rate cost synergy of $30 million in the second year after the transaction is completed.
The Texas-based company also said it will delist Tyman from the London Stock Exchange and intends to close its headquarters in London, but will not close any of the UK company's manufacturing facilities.
Quanex said in a joint statement that the merged group will be listed on the New York Stock Exchange.