15th Jun 2016 06:48
LONDON (Alliance News) - Tyman PLC on Wednesday said it will buy North American door manufacturer Bilco for USD71.0 million, to be partly funded through a placing of up to 5.0% of its issued share capital.
Tyman, a supplier of door and window components, said Bilco will form the core of AmesburyTruth's new commercial division. AmesburyTruth is Tyman's North American division which manufactures window and door hardware components.
Tyman said Bilco's differentiated product portfolio and capabilities are principally targeted at the commercial sector of the market and are complementary to those of AmesburyTruth, which is mainly focused on the residential sector.
Bilco reported revenue of USD54.3 million for the year ended December 31, up from GBP52.2 million a year earlier, Tyman said, noting that Bilco has had a "promising start to 2016 and is trading ahead of 2015 in terms of revenue, order book and profitability".
Tyman added that Bilco will be accretive to its earnings per share from 2017.
Tyman said it will fund the acquisition through its cash reserves and a draw down on its existing committed banking facilities, as well as a share placing of up to 8.5 million shares, or 5.0% of existing issued share capital, at 225 pence per share, which it announced in a separate statement on Wednesday.
Shares in Tyman closed flat at 225.50p on Tuesday.
This, Tyman said, will raise around GBP19.1 million, with the placing to be conducted through an accelerated bookbuild, which opened on Wednesday morning.
Canaccord Genuity is acting as sole bookrunner and broker for the placing.
"The acquisition of Bilco represents a strategic opportunity to add a manufacturer of high quality engineered access and egress products to AmesburyTruth, as we seek to develop our offering into the commercial sector in North America. Together with AmesburyTruth's existing product offering and our recent acquisition of Giesse we now have an extended portfolio of products and access to well established routes to the commercial sector of the market," said Chief Executive Louis Eperjesi.
By Hannah Boland; [email protected]; @Hannaheboland
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