ST. LOUIS, Aug. 13, 2020 (GLOBE NEWSWIRE) -- Huttig Building Products, Inc. (“Huttig” or the “Company”) (NASDAQ: HBP), a leading domestic distributor of millwork, building materials and wood products, confirmed it has received an unsolicited, non-binding, expression of interest from Mill Road Capital Management LLC and its affiliated funds (“Mill Road”), 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.About HuttigHuttig, currently in its 136th year of business, is one of the largest domestic distributors of millwork, building materials and wood products used principally in new residential construction and in-home improvement, remodeling and repair work. Huttig distributes its products through 25 distribution centers serving 41 states. Huttig's wholesale distribution centers sell principally to building materials dealers, national buying groups, home centers and industrial users, including makers of manufactured homes.For more information please contact:Huttig Building Products email@example.com
Shares of Huttig Building Products Inc. (NASDAQ: HBP) increased by 96.72% in the past three months. Before we understand the importance of debt, let's look at how much debt Huttig Building Products has.Huttig Building Products's Debt Based on Huttig Building Products's balance sheet as of August 4, 2020, long-term debt is at $125.60 million and current debt is at $1.70 million, amounting to $127.30 million in total debt. Adjusted for $1.80 million in cash-equivalents, the company's net debt is at $125.50 million.To understand the degree of financial leverage a company has, investors look at the debt ratio. Considering Huttig Building Products's $288.20 million in total assets, the debt-ratio is at 0.44. As a rule of thumb, a debt-ratio more than 1 indicates that a considerable portion of debt is funded by assets. A higher debt-ratio can also imply that the company might be putting itself at risk for default, if interest rates were to increase. However, debt-ratios vary widely across different industries. For example, a debt ratio of 35% might be higher for one industry, whereas normal for another.Why Debt Is Important Besides equity, debt is an important factor in the capital structure of a company, and contributes to its growth. Due to its lower financing cost compared to equity, it becomes an attractive option for executives trying to raise capital.However, interest-payment obligations can have an adverse impact on the cash-flow of the company. Equity owners can keep excess profit, generated from the debt capital, when companies use the debt capital for its business operations.See more from Benzinga * Earnings Scheduled For August 3, 2020 * Stocks That Hit 52-Week Highs On Friday(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Mill Road Capital offers $2.75 per share to acquire Huttig Building Products, Inc. (NASDAQ GS: HBP)