Door and window parts supplier Tyman PLC (LON:TYMN) is buying Italian rival Giesse to expand its international business.
Tyman said it was buying the Bologna-based aluminium window and door hardware maker to add it to its Schlegel international division.
The group said it would give it a high-quality engineered hardware product for the aluminium window and door market in Europe, the Middle East and elsewhere.
It will provide Tyman with a local presence for the first time in markets including Argentina, France, Greece, India, Portugal, Turkey and the United Arab Emirates as well as a hardware offer in Brazil, a North American commercial offer and a factory in mainland China.
Giesse has an enterprise valuation of about £61.1mln on a cash and debt free basis, representing an acquisition multiple of 7.31x Giesse's adjusted pre-tax underlying earnings in 2015.
Tyman chief executive Louis Eperjesi said: "The acquisition will be immediately accretive to the group's underlying earnings per share, will significantly strengthen its existing business model and help achieve our growth objectives."
Shares in Tyman ticked up 3.5p to 285.25p in early London trading.
Liberum Capital said it expected the acquisition to improve earnings per share by about 8%-10%.
"Tyman’s FY results beat by 5% at the pre-tax profit level as margin progress was stronger than expected," the broker said. "Management is confident of better growth in the US in 2016. We expect a good response to the Giesse acquisition and the earnings beat."