Shares in Tyman PLC (LON:TYMN) edged higher as the ERA locks owner agreed to acquire Bilco, a North American manufacturer roof vents and hatches in a US$71mln (£50.3mln) deal.
Bilco will form the core part of AmesburyTruth’s – Tyman’s North American arm – new commercial division, as the company looks to expand its presence in the US and Canada.
“The acquisition of Bilco represents a strategic opportunity to add a manufacturer of high quality engineered access and egress products to AmesburyTruth,” said chief executive Louis Eperjesi.
“We expect the acquisition will be accretive to the group's underlying earnings per share from 2017, will significantly strengthen the Group's existing business model and help deliver our growth objectives,” he added.
The deal will be funded from the group’s cash reserves and a drawdown on existing banking facilities.
Bilco – which operates mainly in the US but also in Canada, Mexico and the UK – generated an adjusted operating profit of US$5.7mln in 2015, on revenues of US$54.3mln.
The Connecticut-based firm says it is trading ahead of 2015 in terms of revenue, order book and profitability.
Bilco estimates that around 80% of its product sales are into the commercial sector.
It has been involved in some high-profile projects over recent years, providing floor doors for the New York City 9/11 memorial and for the latest Disneyland in Shanghai, as well as supplying roof hatches for the Olympic Stadium in London.
Separate to the acquisition, Tyman also announced a placing of up to 5% of its issued share capital to raise around £19.1mln, as it looks to reduce gearing on its balance sheet and provide some structural headroom.
Shares in Tyman were up 14p, or 6%, to 239.5p.