- Quanex Building Products ( NYSE: NX ) said Tuesday it will acquire custom polymer mixer LMI Custom Mixing for $92M, or $79M net of the present value of $13M in anticipated future cash tax benefits.
- The deal will be immediately accretive to adj. EPS and improve consolidated margin profile.
- The transaction will be funded with cash and borrowings on Quanex's ( NX ) existing revolving credit facility.
- Quanex expects to realize ~$500K in synergies in the first year after the acquisition and expects LMI to generate ~$80M revenue and ~15% EBITDA margin in FY23.
- The acquisition, which is expected to result in vertical integration and cost savings due to complementary operations, fits within Quanex's ( NX ) material science and process engineering expertise.
For further details see:
Quanex Building to acquire custom polymer mixer LMI Custom Mixing for $92M