Huttig Building Products confirmed it has received a takeover offer from Mill Road Capital Management, a private investment firm. Connecticut-based Mill Road Capital is offering to purchase 100% of Huttig’s shares it does not already own for $2.75 per share.
Mill Road Capital Management’s offer represented a premium of 67% over the company’s August 6 closing price of $1.65. Mill Road Capital currently is one of Huttig’s largest shareholders, with ownership of 8.1% of its outstanding shares.
St. Louis-based Huttig Building Products said its board of directors will review Mill Road Captial’s letter with its financial and legal advisers and determine the course of action it believes is in the best interests of its stockholders, according to a news release.
Huttig Building Products is a domestic distributor of millwork, building materials and wood products used in residential construction and in-home improvement, remodeling, and repair work. The company distributes its products through 27 distribution centers serving 41 states. For the 2019 fiscal year, Huttig reported a net loss of $21.3 million and net sales of $812 million.
