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

The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into
2 Mar 2023
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
27 Feb 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023

Most Popular

5 top UK tech stocks
Investments

5 top UK tech stocks

The UK market has never been considered a fertile hunting ground for tech stars. But there are plenty of promising companies beyond the old economy, s…
23 Mar 2023
Where will house prices go in 2023?
House prices

Where will house prices go in 2023?

We explore what could happen to house prices in 2023 as the market continues to slow down.
24 Mar 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Ofgem’s price cap is now predicted to fall below £2,000, based on average typical use, from July, for the first time since 2022. We have all the detai…
21 Mar 2023