Woodgrain, a millwork operation based in the US and Chile, and Huttig Building Products, a distributor of millwork, building materials and wood products used in residential construction and in-home improvements, have announced an agreement where Woodgrain will purchase Huttig.
This acquisition will increase Woodgrain’s distribution network, its product offering, and its value-added services. Woodgrain will acquire Huttig in an all-cash transaction valued at US$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 Q2 2022 subject to regulatory approval.
“Huttig has a long history as a value-added distributor, focused on service and innovation,” said Kelly Dame, president and CEO of Woodgrain. “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.”
Jon Vrabely, Huttig’s president and CEO, also commented, “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. 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 organisations 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.”