04:39 AM EDT, 04/22/2024 (MT Newswires) -- Quanex Building Products ( NX ) said on Monday that it has agreed to acquire Tyman plc, a supplier of construction products, for approximately $1.1 billion in enterprise value.

Under the deal, Tyman shareholders will receive 4 British pounds ($4.95) per share, payable either with a mix of cash and stock or as a capped all-share alternative of 0.14288 shares of Quanex common stock per Tyman share. Upon closing, Tyman shareholders are expected to own between 30% and 32% of Quanex.

The company plans to fund the deal using fully committed financing from Wells Fargo (WFC) Bank, Bank of America (BAC) Securities, and TD Bank (TD).

The acquisition is expected to result in recurring pre-tax cost synergies of approximately $30 million on an annual run-rate basis which are expected to be achieved within two years after transaction close, the company said. It also expects the deal to deliver material earnings per share accretion in the first fiscal year post-close.

Closing of the deal is expected to occur in H2, subject to the satisfaction of closing conditions, including shareholder approval from both Tyman and Quanex shareholders and regulatory approvals.