Hunter Douglas Shares Soar on 3G Capital’s $7.1 Bln Deal to Buy Controlling Stake — Update

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by Olivia Bougault

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Shares of Hunter Douglas NV rose sharply on Friday after Dutch maker Window Covering said 3G Capital would buy a 75% stake in the company in a deal that would mean an enterprise value of about $7.1 billion.

At 1312 GMT, Amsterdam-listed shares in Hunter Douglas were up 69.8% at EUR172.20.

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New York-based investment group 3G Capital entered into a definitive agreement with Ralph Sonnenberg, executive chairman and controlling shareholder of Hunter Douglas, for the transfer of a controlling interest at a price of 175 euros ($198.23) per ordinary share, 73%. Premium to the December 30 closing price, Hunter Douglas said late Thursday. It added that compared to Hunter Douglas’s all-time high closing share of EUR 106.40, this is a 64% premium.

The company said the Sonnenberg family will still hold a 25% stake in Hunter Douglas after the deal is completed.

Joao Castro Neves, currently a senior partner at 3G Capital, is set to take over as Hunter Douglas’ new chief executive officer after the deal is completed, the company said. The Restaurant Brands International Inc. And Kraft Heinz also sits on the company’s board.

Hunter Douglas co-CEO David Sonnenberg will take over from his father as executive chairman of the company after the deal is completed.

“The Board of Directors of Hunter Douglas, represented only by its independent directors, unanimously supports the transaction and has entered into a separate agreement with 3G Capital and Ralph Sonnenberg to provide equal value to all minority shareholders. To facilitate cash exit and secure ordinary shares,” it said.

The deal is expected to close in the first quarter of 2022.

Hunter Douglas said that for the fourth quarter, it expects sales to be similar to the third quarter, and sees earnings before interest, taxes, depreciation and amortization in the range of $195 million and $205 million.

For 2022, Hunter Douglas forecasts that acquisitions, disinvestments and, if market conditions remain unchanged, sales and EBITDA will grow by mid-single-digit percentages for the year. The Ebitda margin should be more than 18%, it said.

Hunter Douglas posted sales of $3.54 billion for 2020, down from the previous year. “The 3.9% sales decrease reflects a 4.6% volume decrease, a 0.4% negative currency impact, 2.8% growth from acquisitions and a 1.7% decrease from disinvestment,” it was quoted as saying at the time of the results. However, Ebitda was up 5.4% at EUR530.7 million.

Write to Olivia Bugault at [email protected]


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