15th Jun 2016 07:27
LONDON (Alliance News) - Tyman PLC on Wednesday said it will buy North American door manufacturer Bilco for USD71.0 million, with the purchase to be partly funded through a placing equal to 5.0% of its existing shares, which completed on Wednesday morning.
Tyman, a supplier of door and window components, said New Haven, Connecticut-based 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 in 2015, up from GBP52.2 million the 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 using the GBP19.1 million raised in its placing of 8.5 million shares, or 5.0% of existing issued share capital.
In the placing, which was conducted via an accelerated bookbuild, the shares were sold at 225 pence per share.
Shares in Tyman were up 2.4% at 230.95 pence on Wednesday.
Canaccord Genuity acted 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 Tyman Chief Executive Louis Eperjesi.
By Hannah Boland; [email protected]; @Hannaheboland
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