Melrose sells windows and doors unit to AIM-listed Tyman

Melrose, the industrial conglomerate which buys and sells manufacturing businesses, has agreed to dispose of its Truth Hardware division to AIM-listed building products group Tyman.

Melrose, the industrial conglomerate which buys and sells manufacturing businesses, has agreed to dispose of its Truth Hardware division to AIM-listed building products group Tyman.

Truth Hardware, which was first acquired as part of Melrose's takeover of engineering and manufacturing company FKI in 2008, designs and manufacturers components for North American producers of fenestration products including windows and patio doors.

The division, which made an operating profit of $18.6m in 2012 on sales of $126m, is being sold to Tyman for a total consideration of $200m (£129m) and is payable in cash on completion.

Melrose said it would use the proceeds to pay down existing borrowings.

"We are very pleased with the progress Truth has made since our acquisition of FKI Plc in 2008 and we believe it is now well placed for the future," said Melrose Chief Executive Simon Peckham.

"As planned at acquisition, we are disposing of Truth at the early stages of what appears to be a recovery in the United States housing market.Tyman is well positioned to add further value to the business and we wish them and Truth all future success."

Tyman, formerly known as Lupus Capital, is an international supplier of building products to the door and window industries. The company said it sees this as a "strategic opportunity" to develop its position in the North America door and window components market.

The firm is to fund the acquisition by a combination of a placing and open offer to raise £73m, a $100m new term loan and existing cash reserves.

"The acquisition presents a number of substantial opportunities for Tyman and we look forward to growing our enlarged platform in North America to create an outstanding supplier for our customers and to deliver superior value for our shareholders in the future," said Tyman's Non-Executive Chairman Jamie Pike.

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Prepare for the end of the epic bubble in US stocks
US stockmarkets

Prepare for the end of the epic bubble in US stocks

US stocks are as expensive as they’ve ever been. How can you prepare your portfolio for a bubble bursting?
18 Jan 2021
The best investment trusts to buy for 2021
Investment trusts

The best investment trusts to buy for 2021

Sectors ranging from emerging markets to student accommodation look poised to do well this year, says David Stevenson, as he picks the best investment…
19 Jan 2021