Woodgrain entered a definitive agreement to purchase Huttig Building Products, a distributor of millwork, building materials, and wood products. Woodgrain said the acquisition will significantly expand the company’s distribution network, its product offering, and its value-added services.
“Huttig has a long history as a value-added distributor, focused on service and innovation,” Kelly Dame, president and CEO of Woodgrain, said in a news release. “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.”
Woodgrain will acquire Huttig in an all-cash transaction valued at $10.70 per share, or approximately $350 million, including the assumption of debt. The acquisition, which was unanimously approved by the Huttig Board of Directors, is expected to close in the second quarter of 2022.
“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,” Jon Vrabely, Huttig’s president and CEO, said. “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 our stakeholders with Woodgrain, we have enjoyed a strong partnership with them for several decades. Our organizations 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.”
Huttig distributes millwork, building materials, and wood products through 25 distribution centers serving 41 states. Fruitland, Idaho-based Woodgrain operates six divisions and over 30 manufacturing and warehouse facilities in the United States and South America. The company is a producer of moldings, doors, and windows.