Tyman PLC Acquisition (5892N)
May 10 2018 - 1:01AM
UK Regulatory
TIDMTYMN
RNS Number : 5892N
Tyman PLC
10 May 2018
TYMAN PLC
("Tyman" or the "Group" or the "Company")
ACQUISITION OF ZOO HARDWARE BY ERA
Tyman plc, a leading international supplier of engineered
components to the door and window industry, announces the
acquisition of Zoo Hardware (the "Acquisition") by its UK Division,
ERA, which represents a further milestone in the development of the
Group's UK business.
Zoo Hardware
Zoo Hardware is a designer and supplier of architectural
hardware for the UK residential and commercial markets, principally
sold through the trade distribution channel. Zoo Hardware is based
in Carlisle, was founded by Robin Graham in 2010 and has grown
rapidly since inception. The acquisition is consistent with ERA's
strategy to enhance its product range and brings innovative, fast
growing brands to the Division's existing portfolio.
In the year ended 31 March 2018, Zoo Hardware reported unaudited
revenue of GBP17.8 million and EBITDA of GBP2.8 million. Cost
synergy benefits from the acquisition of not less than GBP0.75
million are targeted by 2020.
Zoo Hardware's experienced management team, led by Robin Graham,
will be retained following the acquisition. Robin Graham will also
become a non-executive Director of ERA.
The Enterprise Valuation for Zoo Hardware is GBP19.0 million
(calculated on a debt free, cash free basis and subject to
customary adjustments), equating to a March 2018 EBITDA multiple of
6.8x. GBP1.5 million of the consideration is deferred for two years
and GBP1.4 million of the consideration is in the form of ordinary
shares in Tyman plc ("Consideration Shares").
420,926 ordinary shares in Tyman plc will be issued as
Consideration Shares and are expected to be admitted to trading on
15 May 2018. The Consideration Shares may not be disposed of before
May 2020, other than with the consent of the Board of Tyman.
Financial effects *
The Acquisition is expected to be immediately accretive to the
Group's Underlying EPS, and ROAI for the Acquisition is expected to
exceed the Group's minimum run rate return threshold of 15.0 per
cent. within two years of ownership.
The Acquisition is principally being funded through Tyman's
existing debt facilities. The Group's pro forma Leverage at 31
December 2017, assuming that completion of the Acquisition and the
Ashland acquisition had both occurred on 1 January 2017, would have
been approximately 2.10x.
* This financial effects statement should not be construed as a
profit forecast or interpreted to mean that the future earnings per
share, profits, margins, returns on capital or cashflows of the
Group will necessarily be greater than the historic published
figures or that Leverage will necessarily be lower than the
historic published figures.
Louis Eperjesi, Chief Executive, commented:
"The acquisition of Zoo Hardware complements ERA's product range
and offering and represent a further milestone in the development
of the ERA Division.
"Zoo Hardware has grown rapidly since its establishment in 2010
and brings to ERA an attractive, design led architectural hardware
offering; together with increased exposure to the trade
distribution route to market.
"The business brings further growth opportunities for the
Division and Tyman's ownership will allow Zoo Hardware to realise
its potential as a part of a larger group."
"On behalf of the Board I am pleased to welcome the management
and employees of Zoo Hardware to the Group."
10 May 2018
Enquiries:
Tyman plc 020 7976 8000
Louis Eperjesi - Chief Executive Officer www.tymanplc.com
James Brotherton - Chief Financial Officer
MHP Communications 020 3128 8100
Reg Hoare
Nessyah Hart
Notes to editors
Tyman is a leading international supplier of engineered
components to the door and window industry. The Group's three
Divisions - AmesburyTruth, ERA and SchlegelGiesse - are market
leaders in their respective geographies.
The Group employs over 4,000 people and operates facilities in
19 countries worldwide.
Tyman is listed on the London Stock Exchange under the ticker
TYMN.
A glossary of defined terms is contained in the Group's Annual
Report. Further information on the Group and the Group's products
are available at www.tymanplc.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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