Woodgrain makes tender offer for outstanding Huttig shares

Woodgrain Inc. announced that its affiliate, HBP Merger Sub, Inc. has commenced the previously announced cash tender offer for all of the issued and outstanding shares of common stock of Huttig Building Products, Inc. 

The price is $10.70 per share in cash for the merger agreement announced between the two companies on March 21.

The $10.70 per share all-cash tender offer is being to an ‘offer to purchase” dated March 28 and represents a premium of approximately 12.6% over Huttig’s closing share price on March 21.

The date is Huttig’s last trading day prior to the acquisition announcement. The price is also a premium of approximately 13.1% compared to the 30-day volume-weighted average price over the 30-day trading period ended March 21.

Additionally, the offer is a premium of about 105% compared to Huttig’s closing price on October 13, 2021. 

On that date, Huttig announced that its board of directors was considering strategic alternatives.

For the fourth quarter 2021, Huttig reported net sales increased nearly 25% to $230.4 million. For the full year, sales increased 18.4% to $937.8 million. 

Mill Road Capital, a private investment firm, attempted to acquire Huttig in 2020 and made several stock acquisition proposals to the company. At the time, Mill Road Capital was Huttig's largest shareholder.

Based in Fruitland, Idaho, Woodgrain manufactures moldings, doors, and windows. The company operates six divisions and over 30 manufacturing and warehouse facilities in the United States and South America. 

Huttig distributes products through 25 distribution centers serving 41 states. The company’s primary customers include building materials dealers, national buying groups, home centers, and industrial users, including manufactured home producers.