Private investment firm Mill Road Capital increased its takeover offer to acquire Huttig Building Products. In its acquisition proposal, Mill Road has increased its proposal to $4 per share for all of the shares of Huttig it does not already own.
The offer is a 142% premium over Huttig’s closing stock price of $1.65 on Aug. 6. The investment firm is already one of Huttig’s largest shareholders, owning about 8.1% of the distributor’s shares.
Mill Road submitted its initial offer of $2.75 per share in August, at the time representing a 67% premium on Huttig’s Aug. 6 closing stock price. Greenwich, Conn.-based Mill Road said it plans to fund the acquisition through a combination of third party debt and equity capital provided by Mill Road.
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.
