Amesbury Parent to Acquire Truth Hardware
In a deal bringing together two of North America's largest suppliers of OEM window, door and skylight hardware, Tyman plc, the British parent company of Amesbury, has reached an agreement to acquire Truth Hardware. The $200 million transaction is expected to close in June, according to Melrose Industries plc, the UK-based firm that currently owns Truth.
“We are delighted to announce the acquisition of Truth Hardware, which represents a major step in Tyman’s development as a focused supplier of components to the door and window industry worldwide," says Jamie Pike, non-executive chairman of Tyman. "The acquisition represents an excellent fit with Tyman’s business model and significantly broadens Tyman’s coverage of the window and door market in North America. The acquisition presents a number of substantial opportunities for Tyman, and we look forward to growing our enlarged platform in North America to create an outstanding supplier for our customers and to deliver superior value for our shareholders in the future.”
Tyman's business units are primarily focused on the U.S. and UK markets. In North America, Amesbury operates facilities throughout the U.S., producing hardware, weatherseals, extrusions and other products targeted primarily at manufacturers of windows and doors. In the UK, Tyman's building products unit operates under the grouphomesafe name, supplying a similar wide range of window and door components.
Tyman's other business unit is Schlegel International, which operates manufacturing sites in Germany, Spain, Belgium and Australia, and sells window and door seals and other products in more than 75 countries around the world.
According to Tyman, Amesbury and Truth together will provide it with an expanded and highly complementary product portfolio, especially in casement hardware. The group will also enjoy broadened relationships within a largely common customer base of North American window and door OEMs.
With the addition of Truth's operations, the new business will have an enlarged and strategically positioned manufacturing footprint, including a facility in Canada. This will provide the business with the potential for meaningful market share in Canada. As part of Tyman, Truth Hardware will also have greater access to markets outside North America, officials note.
"The acquisition is fully in-line with Tyman’s stated strategy of growth and represents a strategic opportunity to further develop our business in North America," says Louis Eperjesi, Tyman chief cxecutive. "The acquisition adds a complementary product portfolio to Tyman’s existing offering in North America, a well-invested manufacturing base, a trusted brand and a meaningful presence in the Canadian market. Truth Hardware brings established customer relationships and product capabilities that together with our existing business create a platform of scale well positioned to benefit from future market growth. We look forward to welcoming Truth Hardware employees into our organization to expand our existing positions across North America and beyond.”
“We are very pleased with the progress Truth has made since our acquisition of FKI Plc in 2008 and we believe it is now well placed for the future," says Simon Peckham, chief executive at Melrose. "As planned at acquisition, we are disposing of Truth at the early stages of what appears to be a recovery in the United States housing market. Tyman is well positioned to add further value to the business, and we wish them and Truth all future success.”