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

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by Olivia Bougault

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Shares of Hunter Douglas NV rose on Friday after it said 3G Capital would buy a 75% stake in the Dutch window covering company, meaning an enterprise value of about $7.1 billion.

At 1037 GMT, Amsterdam-listed shares in Hunter Douglas were up 70% at EUR172.40.

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Investment company 3G Capital entered into a definitive agreement with Ralph Sonnenberg, executive chairman and controlling shareholder of Hunter Douglas, for the transfer of the controlling interest at a price of 175 euros ($198.23) per ordinary share, a 73% premium to the closing price on 30 December, Hunter Douglas said late Thursday.

The company said the Sonnenberg family will still hold a 25% stake in Hunter Douglas 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 company said Joao Castro Neves, currently a senior partner at 3G Capital, should take over as Hunter Douglas’ new CEO after the deal is completed.

Meanwhile, Hunter Douglas said it expects sales in its fourth quarter to be similar to those in its third quarter, while earnings before interest, taxes, depreciation and amortization should come in between $195 million and $205 million.

For 2022, Hunter Douglas sees sales and Ebitda to grow by a mid-single-digit percentage from 2021, excluding the effects of acquisitions, disinvestment and if market conditions remain unchanged. The Ebitda margin should be above 18 per cent.

Write to Olivia Bugault at [email protected]

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