Building supplier Tyman becomes latest to leave London in £788m US takeover

22 April 2024, 13:44

Two windows, with curtains drawn, in a north London street.
Tyman agrees takeover by US rival. Picture: PA

The FTSE 250-listed windows and doors supplier has agreed a buyout by Texas-based Quanex, joining a clutch of firms leaving the London market.

Building products supplier Tyman is set to become the latest UK-listed company to be snapped up by a US counterpart.

Quanex Building Products has agreed to buy the FTSE 250 doors and windows specialist in a deal which values Tyman at about £788 million.

Texas-based Quanex, which also makes parts for windows and doors, said in a joint statement that Tyman would delist from the London Stock Exchange (LSE), and the combined company will be listed in New York.

A clutch of companies has already left or opted against the London stock market of late.

Britain’s biggest chip company ARM floated in New York last autumn, in a move which was widely interpreted as a blow for the LSE.

Irish building supplies group CRH also moved its stock market listing to Wall Street in June 2023, while plumbing equipment supplier Ferguson did the same in 2022.

Nicky Hartery, non-executive chairman of Tyman, said the deal will be “transformative” and that it is “the best path to maximising value for Tyman shareholders”.

“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,” he said.

Quanex and Tyman directors said they will unanimously recommend that shareholders approve the deal.

The bid is equivalent to 400p per share and comes in about 35.1% higher than Tyman’s Friday closing price of 296p per share.

Tyman shareholders will get 240p in cash and part of a new Quanex share for every share they hold.

Tyman’s largest single shareholder, Swiss hedge fund Teleios Capital Partners, which has a 16.4% stake, supported the proposed deal.

George Wilson, chief executive of Quanex, said the move would give the company a “more diverse geographic footprint, product offering and customer base”.

“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.”

By Press Association