Huttig completes share repurchase
Huttig Building Products has completed a repurchase of 1.0 million shares of its common stock at $1.10 per share from its largest stockholder, The Rugby Group Limited. The share repurchase was effected in a private transaction, and the aggregate purchase price was funded with available funds.
Jon Vrabely, president and CEO, said in a prepared statement: “Throughout the entire unprecedented downturn in the housing market over the past five years, we have focused on preserving the long-term value proposition of the company, managing the integrity of the balance sheet and protecting the interests of our shareholders. To that end, we have been successful in meeting our objectives without adding significant debt to the balance sheet or diluting our shareholders. We are extremely pleased that our financial performance and liquidity position have provided us the opportunity to deliver meaningful value to our shareholders through this transaction."
Headquartered in St. Louis, Huttig is a leading distributor of millwork, building materials and wood products used principally in new residential construction and home improvement, remodeling and repair work. Huttig distributes its products through 27 wholesale distribution centers serving 41 states. The company sells principally to building materials dealers, national buying groups, home centers and industrial users, including makers of manufactured homes.
Headwaters to acquire Kleer Lumber
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South Jordan, Utah-based Headwaters Inc., a division of Tapco, agreed to acquire the assets of cellular PVC trim and moulding product manufacturer Kleer Lumber.
The purchase price is about $43 million for Kleer, whose products are made at its Westfield, Mass., manufacturing and research and development facility.
Headwaters said it believes the demand for cellular PVC building products is growing due to the ability to cut, mill, shape and install in the same manner as wood products, but with the added benefit of cellular PVC requiring significantly less maintenance than wood. Headwaters intends to introduce Kleer Lumber’s product offerings into its national distribution network, expanding its point-of-sale locations.
According to Headwaters, the acquisition of Kleer Lumber will add a full range of cellular PVC products to Headwaters’ Light Building Products offerings, including trim boards, millwork, sheet stock, paneling and moulding, as well as the company’s recently introduced decking and railing products.
Associated Building Material Distributors hires branding firm
The Associated Building Material Distributors of America (ABM), an association for independent building material and millwork wholesale distributors, has partnered with Modamedia Communications to provide brand, Web and marketing services to the association and serve as a resource to its members. In addition, Modamedia will enhance member and trade communications.
“We are constantly looking for strong partners to better support our organization, our members and industry allied partners,” said Garry Tabor, the organization’s executive VP. “Modamedia is partnering with us on positioning our association in the marketplace, and is a valuable partner and resource to provide marketing services to our member companies for those seeking branding, marketing and communications support services.”
Modamedia is a full-service advertising, marketing and public relations firm that offers marketing planning, brand strategy, advertising, online and interactive marketing, multimedia and video services.
Near term, Modamedia will be working with the ABM team to update the company’s brand strategy, launch a new website, and build a marketing strategy. The new strategy elements will be released at the association’s March 2013 convention.
Based in El Dorado Hills, Calif., ABM is an association for independent building material and millwork wholesale distributors. It was formed in 1975 and currently has 46 member-distributors who serve all 50 states and Canada. ABM has supplier agreements with approximately 65 industry-leading manufacturers.
The association negotiates rebate programs and also conducts management seminars, provides financial analysis, comparative industry benchmarking metrics, and other key industry indicators and trends analysis to its members.