DAVY VIEW

ASSA ABLOY’s deal to acquire the Hardware and Home Improvement (HHI) division of Spectrum Brands shines a light on the potential true value of Tyman’s business. The takeout price of $4.3bn implies an EBITDA acquisition multiple of c.14x versus Tyman trading on just 8.7x our FY21 forecast. A similar multiple applied to Tyman would suggest a share price of close to £7.43, nearly 70% above current levels. The deal rationale leans heavily on HHI’s combination of attractive North American residential exposure, well-known brands, high quality products and strong customers ties – all of which rings likewise true for Tyman. Coincidentally, Tyman’s management will present at our Industrials Conference today at 12.00.