Quanex Building Products CORP (NX): M&A transaction — Quanex acquires LMI Custom Mixing assets for $92M; expects $80M revenue, 15% EBITDA margin

Quanex Building Products CORP

Purchase price $92M cash; $79M net of $13M present value of future tax benefits.
Deal funded with cash-on-hand and borrowings on existing revolving credit facility.
Quanex expects ~$500K synergies in first year; LMI revenue ~$80M and ~15% EBITDA margin in fiscal 2023.
Acquisition adds custom polymer mixing capabilities; vertical integration with existing IG spacers business.
Quanex says deal immediately accretive to adjusted EPS and meets return hurdles within 3 years.

item 1.01 item 2.01 item 2.03 item 7.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

M&A Transactions SEC 8-K Item 2.01/5.01 confidence 0.95

Quanex Building Products CORP completed an acquisition involving LMI Custom Mixing, LLC for $92 million in cash, with $7.1 million of this amount funded by IG Systems into escrow substantially as security for the seller parties' indemnification obligat (closed 2022-11-01).

Action: acquisition
Counterparty: LMI Custom Mixing, LLC
Consideration: $92 million in cash, with $7.1 million of this amount funded by IG Systems into escrow substantially as security for the seller parties' indemnification obligat
Closing: 2022-11-01

Exact text from the filing

agreed to assume certain liabilities relating to the Purchased Assets (collectively, the “Acquisition”). As consideration for the Purchased Assets, IG Systems agreed to pay LMI $92 million in cash, with $7.1 million of this amount funded by IG Systems into escrow substantially as security for the seller parties’ indemnification obligations. The purchase price is

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Source: SEC EDGAR

accession 0001104659-22-113504

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