Tyman becomes latest UK firm to be snapped up by US rival in £788million deal

Tyman said it recommended shareholders vote in favour of the takeover

Building products supplier Tyman is set to be the latest UK-listed company to be acquired by a US firm, in a deal worth around £788million.

Quanex Building Products has agreed to purchase the FTSE 250 doors and windows specialist. The Texas-based company, which also manufactures parts for windows and doors, announced in a joint statement that Tyman would delist from the London Stock Exchange (LSE), with the merged company to be listed in New York.

This follows a trend of companies leaving or choosing not to list on the London stock market. Last autumn, Britain’s largest chip company ARM floated in New York, a move seen as a setback for the LSE.

In June 2023, Irish building supplies group CRH moved its stock market listing to Wall Street, followed by plumbing equipment supplier Ferguson in 2022. Nicky Hartery, non-executive chairman of Tyman, described the deal as “transformative” and “the best path to maximising value for Tyman shareholders”.

He added: “Today marks the beginning of an exciting next chapter for Tyman and our talented employees, and we look forward to joining with Quanex to deliver future growth and success.” Both Quanex and Tyman directors will unanimously recommend that shareholders approve the deal.

The offer equates to 400p per share, approximately 35.1% higher than Tyman’s Friday closing price of 296p per share. Tyman shareholders are set to gain 240p in cash and a slice of a new Quanex share for each share they hold in the proposed deal.

Lending its backing to the deal is Teleios Capital Partners, Tyman’s biggest individual shareholder, which owns a 16.4% stake. Quanex chief executive George Wilson is optimistic about the move, stating that it will grant his company a “more diverse geographic footprint, product offering and customer base”.

He added: “With significantly enhanced scale, we are looking forward to fully optimising our portfolio of products and assets to position Quanex as a comprehensive solutions provider for our customers.”