Deal scheduled to close in H2 (Il Sole 24 Ore Radiocor) - London, 22 Apr - The acquisition has been unanimously approved by the board of both Quanex and Tyman and is currently expected to close in the second half of calendar year 2024, Quanex said.

Teleios, which owns approximately 16.4% of the outstanding shares of Tyman, has entered into an irrevocable undertaking to vote in favor of the acquisition at the Tyman shareholder meetings, it added.

Following closing of the acquisition, the combined company's headquarters will be located at Quanex's current head office in Houston, Texas. Quanex said that it currently does not intend to close any of Tyman's manufacturing facilities.

Quanex said that the acquisition of Tyman "creates a comprehensive solutions provider in the building products industry," which on a pro forma basis generated approximately 2 billion dollars of revenue in the fiscal year ended October 31, 2023.

It added that the acquisition is expected to be "meaningfully accretive" to earnings in the first full fiscal year following the completion of the deal, taking into account cost synergies.

The acquisition will result in recurring pretax cost synergies of approximately 30 million dollars on an annual run-rate basis which are expected to be achieved within two years after transaction close, Quanex said.

The combined company is expected to "maintain modest net leverage upon completion of the acquisition, and expects to achieve net leverage of approximately 1.5x in the medium-term following completion of the acquisition," it added.

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(RADIOCOR) 22-04-24 09:05:57 (0141) 5 NNNN