Huttig reviews its options

Huttig Building Products announced that its board of directors has initiated a process to evaluate potential strategic alternatives aimed at increasing shareholder value.

In a statement issued by Huttig, the St. Louis, Mo.-based building products distributor said the review process is being conducted in consultation with its financial and legal advisors. Huttig has retained Lincoln International as its financial advisor to assist with the strategic review.

“No assurances can be given regarding the outcome or timing of the review process,” the company said. 

Huttig also added that it has not set a timetable for the completion of the process.

In an email received by HBSDealer, Huttig said, We are unable to comment further on this process. We will comment publicly as situations warrant as the process develops."

Mill Road Capital, one of the company’s largest shareholders, made multiple offers to acquire the company last year. At the time, Mill Road Capital owned about 8% of Huttig shares. The move was rejected, however, after other major shareholders objected to the offer. 

Huttig recently entered into a new $250 senior credit facility with a five-year tenure that can be expanded to $325 million through an uncommitted $75 million accordion, subject to certain conditions. 

The company has also swung to a profit and stronger sales in recent months. 

In July, Huttig reported second sales increased nearly 29% to $274.4 million from second quarter 2020 sales of $192 million. The company also posted a net income of $14.9 million from the quarter, marking a big leap from a net income of $1.6 million for the same period last year.

For its 2020 fiscal year, Huttig full-year sales fell 2.4% to $792.3 million compared to sales of $812 million in the prior year. The distributor also reported a net loss of $900,000 compared to a net loss of 21.3 million in the prior year.

Huttig is one of the nation’s largest distributors of millwork, building materials, and wood products. The company serves 41 states through 25 distribution centers.