Building materials distributor Huttig Building Products (NASDAQ: HBP) has agreed to be purchased by Woodgrain, a leading millwork operation with locations in the U.S. and Chile, for approximately $350 million.
Huttig, one of the largest domestic distributors of millwork, building materials and wood products, announced the acquisition Monday.
The deal is expected to significantly increase Woodgrain’s distribution network and product offering.
“Huttig has a long history as a value-added distributor, focused on service and innovation,” said Kelly Dame, Woodgrain president and CEO. “This acquisition will increase our footprint by expanding our network, and by adding Huttig’s expertise and resources to our own, we are positioned to bring even more value to our respective customers and supply partners. We are thrilled to add Huttig’s talented associates to our Woodgrain family.”
The acquisition is an all-cash transaction valued at $10.70 per share, or approximately $350 million, including the assumption of debt.
The acquisition is subject to a minimum tender of a majority of the outstanding Huttig common shares and other customary closing conditions and is expected to close in the second quarter of 2022 subject to regulatory approval. Huttig’s board of directors unanimously approved the acquisition and “recommended that Huttig stockholders tender their shares in the transaction,” the company said.
“We are confident that the Company’s comprehensive strategic alternatives review process that was publicly announced in October 2021 has resulted in a tremendous outcome for our stockholders, associates, and customers,” said Jon Vrabely, Huttig president and CEO. “The Board of Directors determined that this premium, all-cash offer would create increased value for our stockholders, while providing continued growth opportunities for our associates. We are especially pleased that we achieved a great outcome for all of our stakeholders with Woodgrain as we have enjoyed a strong partnership with them for several decades. Our organizations share many of the same values, and we are certain that the Dame family will be great stewards of the Huttig brand and legacy that has existed since 1885.”