Quanex shareholders approve Tyman acquisition share issuance

HOUSTON - In a significant move, Quanex (NYSE:NX) Building Products Corporation (NYSE:NX) announced today that its shareholders have approved the issuance of new shares for the acquisition of Tyman plc, an England and Wales-based company. The approval came during a special meeting held on July 12, 2024, marking a pivotal step in Quanex's expansion strategy.

The special meeting saw a strong turnout with over 30 million shares represented, reflecting the interest of Quanex's shareholders in the transaction. The vote results showed overwhelming support, with 30,029,659 votes in favor of the share issuance, 18,396 against, and 9,244 abstentions.

The approved proposal allows Quanex to issue new common stock shares as part of the consideration for acquiring the entire issued and to be issued ordinary share capital of Tyman. This strategic move is expected to broaden Quanex's product offerings and strengthen its market position in the building products sector.

Additionally, shareholders voted on an adjournment proposal, which would allow the meeting to be adjourned to solicit additional proxies if there were insufficient votes to approve the share issuance. However, due to the approval of the share issuance proposal, the adjournment was not necessary, despite receiving approval with 27,873,926 votes for, 2,172,467 against, and 10,906 abstentions.

Quanex emphasized that the transaction is subject to customary closing conditions, including regulatory approvals. While forward-looking statements about the anticipated benefits of the transaction were made, Quanex also cautioned that these are subject to various risks and uncertainties and that actual results may differ materially.

The company issued a press release on the same day, detailing the results of the stockholder vote and reiterating its commitment to completing the transaction in a timely manner.

This news article is based on a press release statement and provides a summary of the key facts surrounding the shareholder approval of Quanex's share issuance for the acquisition of Tyman plc.

In other recent news, Quanex Building Products Corporation has been making significant strides in its planned acquisition of Tyman plc. The deal, which has received shareholder approval, is expected to boost Quanex's standing in the building products industry. The transaction is slated to conclude in August 2024, with Tyman shareholders set to own around 30-32% of Quanex post-acquisition.

Quanex's Q2 2024 earnings results disclosed a year-over-year decline in net sales and net income, despite lower volumes and pricing pressures in North America. However, the company noted a slight increase in adjusted EBITDA and maintained a strong balance sheet with no net debt. CEO George Wilson reaffirmed the full-year guidance, anticipating a rise in the housing market and product demand later in the year.

The company has also cleared regulatory hurdles, advancing closer to the acquisition of Tyman. Despite facing challenges in the European market due to geopolitical conflicts and high energy costs, Quanex's operational flexibility and sourcing initiatives have yielded strong results. These recent developments reflect the company's optimism about its future performance and ongoing research and development initiatives.

InvestingPro Insights

In light of Quanex Building Products Corporation's (NYSE:NX) recent shareholder approval for share issuance to acquire Tyman plc, it's worth noting some key financial metrics and insights from InvestingPro. The company is currently trading at a P/E ratio of 11.38, which is considered high relative to its near-term earnings growth. This could indicate that investors are expecting higher earnings in the future or that the stock is currently overvalued.

Despite recent market volatility, Quanex has maintained its commitment to shareholder value, as evidenced by its consistent dividend payments over the last 17 years. The company's liquid assets also exceed its short-term obligations, providing a stable financial base for the upcoming acquisition. Furthermore, Quanex's cash flows are strong enough to cover interest payments, which is crucial during a period of expansion and integration of new acquisitions.

InvestingPro Tips suggest that while the company's price has fallen significantly over the last three months, analysts predict Quanex will be profitable this year and has been profitable over the last twelve months. For those looking to delve deeper, there are additional InvestingPro Tips available that could provide further insights into Quanex's financial health and future prospects. Interested readers can find more tips and a complete analysis at InvestingPro. Additionally, users can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

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