Huttig confirms takeover proposal
Huttig Building Products confirmed that it has received a takeover offer from Mill Road Capital.
Mill Road Capital, a private investment firm with offices in San Francisco and Greenwich, Conn., is offering to purchase 100% of the shares the company does not already own at a purchase price of $2.75 per share.
This represents a premium of 67% above the closing price of Huttig stock on Aug. 6. Mill Road in one of Huttig’s largest shareholders with ownership of 8.1% of its outstanding shares.
Huttig, based in St. Louis, Mo., said its board of directors is in discussions with financial and legal advisors with the building products distributor Lincoln Financial as an advisor.
The full offer letter from Mill Road Capital can be accessed here.
Earlier this month, Huttig Building Products posted second quarter net sales of $192 million, a 12.1% drop from second quarter 2019 net sales of $218.5 million.
But Huttig posted a net income of $1.6 million compared to a net loss of $10.3 million for the same period a year ago.