April 22 (Reuters) - U.S.-based Quanex Building Products ( NX )

will buy doors and windows supplier Tyman ( LPUSF ) in a

cash and share deal that values the British firm at about 788

million pounds ($976 million), the companies said on Monday.

Tyman ( LPUSF ) shares surged 25% in early trade.

The acquisition comes at a time U.S. housebuilders are

cutting prices and offering other incentives to increase sales

amid hurdles created for many first time buyers by higher

mortgage rates.

Tyman ( LPUSF ) joins a growing list of companies leaving the London

stock market, after Britain's biggest chip company ARM floated

in New York last year, and building supplies firm CRH and

plumbing equipment company Ferguson shifted their main listings

to the United States.

Under the terms of the deal, Tyman ( LPUSF ) shareholders will get 240

pence in cash and 0.05715 of a new Quanex share for each Tyman ( LPUSF )

share held.

The offer represents a premium of about 35.1% to

London-listed Tyman's ( LPUSF ) Friday closing price of 296 pence.

The main offer comprises about 60% by value in cash and the

rest in new Quanex shares, while an alternative offer gives the

option to get the consideration at a ratio of 0.14288 of a new

Quanex share to every one Tyman ( LPUSF ) share held.

The companies said Tyman ( LPUSF ) will become a wholly-owned unit of

Quanex following the completion of the transaction.

Quanex and Tyman ( LPUSF ) directors intend to unanimously recommend

their shareholders to vote in favour of the proposed deal.

Quanex directors said they believed the acquisition would

help create a more diversified supplier in the building products

sector, particularly across its windows and doors designing

portfolio in North America.

Quanex expects higher core profit margins from the increased

scale after the combination, and significant impact of run-rate

cost synergies of $30 million to be fully achieved by the second

year following completion of the transaction.

The Texas-based company also said it would get Tyman ( LPUSF )

delisted from the London Stock Exchange and intended to close

its head office in London, but would not shut down any of the

British firm's manufacturing facilities.

The combined group will be listed on the New York Stock

Exchange, Quanex said in a joint statement.

($1 = 0.8077 pounds)

(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by

Savio D'Souza, Subhranshu Sahu and Emelia Sithole-Matarise)