|Over a month ago|
Mill Road offers to acquire all outstanding Huttig Building shares for $4/share » 06:4910/1510/15/20
In a regulatory filing,…
In a regulatory filing, Mill Road Capital Management and its affiliated funds disclosed that they have proposed the acquisition of Huttig Building Products. In its proposal letter, Mill Road stated: "As you know, Mill Road is one of the largest shareholders of Huttig with ownership of 8.1% of the company's outstanding shares. We hope that the Board of Directors finds this improved proposal compelling for the company's shareholders. Based on our review of publicly available information to date, Mill Road proposes to acquire 100% of the outstanding shares of the company not already owned by Mill Road for $4.00 per share which represents a premium of 142% over the company's closing share price on August 6th, the date we submitted our prior proposal. The purchase price would be payable in cash. Given our familiarity with the company and significant experience executing going-private transactions, we believe we can complete customary business, accounting, and legal due diligence and negotiate definitive documentation within 45 days. Our proposal is contingent on 1) receiving a 45 day period of exclusivity, 2) confirming that the company's current COVID-impacted annualized earnings power is at least as high as its earnings power immediately prior to the onset of the COVID-19 pandemic, and 3) completing our customary due diligence."
|Over a quarter ago|
Huttig Building Products confirms acquisition proposal from Mill Road Capital » 18:0208/1308/13/20
Huttig Building Products…
Huttig Building Products confirmed it has received an unsolicited, non-binding, expression of interest from Mill Road Capital Management and its affiliated funds, a private investment firm, to acquire all of the outstanding common stock of the company for $2.75 per share. Consistent with its fiduciary duties, the Board of Directors, in consultation with its financial and legal advisors, will review the letter and determine the course of action it believes is in the best interests of its stockholders. The company will communicate future developments in accordance with its ongoing disclosure requirements. The company has retained Lincoln International as its financial advisor.
Mill Road proposes to acquire Huttig Building Products for $2.75 per share » 08:0508/0708/07/20
Mill Road Capital…
Mill Road Capital announced that it sent the following letter to the board of Huttig Building Products. "Mill Road Capital Management LLC and its affiliated funds ("Mill Road") are pleased to present this proposal for the acquisition of Huttig Building Products, Inc. ("Huttig" or the "Company"). As you know, Mill Road is one of the largest shareholders of Huttig with ownership of 8.1% of the Company's outstanding shares. Since making our initial investment in Huttig in 2017, we have developed a deep appreciation of the Company and its CEO, Jon Vrabely. Given our experience in the public markets, we recognize the inherent difficulties of creating value for shareholders as a public, micro-cap company. There is very little sell-side analyst coverage and minimal demand for micro-cap stocks. Institutional investors avoid stocks like Huttig; it is difficult to accumulate a position and any attempt to sell large blocks can materially depress the share price for months. As a result, microcaps often attract short-term shareholders who look for "quick wins" and actively dissuade management from making sensible investments in long-term value-creation. We hope that the Board of Directors finds this proposal compelling for the Company's shareholders and we look forward to working with you in connection with a transaction. Based on our review of publicly available information to date, Mill Road proposes to acquire 100% of the outstanding shares of the Company not already owned by Mill Road for $2.75 per share which represents a premium of 67% over today's closing price. The purchase price would be payable in cash. Given our familiarity with the Company and significant experience executing going-private transactions, we believe we can complete customary business, accounting, and legal due diligence and negotiate definitive documentation within 60 days.Mill Road anticipates the proposed transaction will be funded through a combination of third party debt in addition to equity capital provided by Mill Road. We have ample equity capital to complete the transaction and are highly confident in our ability to raise an appropriate amount of debt financing."
Huttig Building Products reports Q2 EPS 6c vs. (40c) last year » 17:3208/0308/03/20
Reports Q2 revenue…
Reports Q2 revenue $192.0M, one estimate $222.0M. "In light of all of the economic uncertainty caused by the COVID-19 pandemic, I am pleased with our financial performance in the second quarter," said Jon Vrabely, CEO. "We acted early, decisively, and aggressively to adjust our cost structure and inventory levels to mitigate the threat to the company posed by the pandemic. I am very proud of all of our associates for the dedication, hard work, and personal sacrifices that have been made on behalf of our stakeholders. Moving forward, we remain committed to continuing to take the necessary actions to protect our associates and diligently manage the business as the external environment continues to change."
Huttig Building Products reports Q1 EPS (34c) vs. (13c) last year » 17:4005/0405/04/20
Reports Q1 revenue…
Reports Q1 revenue $203.0M, one estimate $222.0M. "Our first quarter operating results were significantly better across every key financial metric as compared to the prior year quarter. On a stand-alone basis, the first quarter of 2020 marked the first full quarter that our results began to reflect the positive impact we planned and anticipated since embarking on our accelerated growth strategy," said Jon Vrabely, Huttig's President and Chief Executive Officer. "Unfortunately, as our results were just beginning to reflect the impact of our efforts and strategy, our world, like that of virtually every other company on the planet, changed. The unprecedented magnitude and unpredictability of the Coronavirus pandemic forced us to shift resources away from the continued execution of our growth strategy and towards the development and implementation of our COVID-19 readiness and response plan. While we believe we were ahead of the curve in developing and executing the earliest versions of our response plan, and have continued to make meaningful progress, we anticipate the impact from this pandemic will be significant in the second quarter and thereafter as we continue working hard to mitigate its effect on our business."