By Olivia Bugault

 

Shares in Hunter Douglas NV rose sharply Friday after the Dutch maker of window coverings said that 3G Capital will buy a 75% stake in the company in a deal that implies an enterprise value of roughly $7.1 billion.

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

New York-based investment group 3G Capital entered into a definitive agreement with Ralph Sonnenberg, the 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 Dec. 30, Hunter Douglas said late Thursday. Compared with Hunter Douglas's all-time high closing share price of EUR106.40, it is a 64% premium, it said.

The Sonnenberg family will still hold a 25% stake in Hunter Douglas after completion of the deal, the company said.

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

David Sonnenberg, co-CEO of Hunter Douglas, will take his father's position as executive chairman of the company after completion of the deal, it said.

"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 facilitate and secure a cash exit for all minority shareholders based on the same price per ordinary share," 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 that of 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 sales and Ebitda will grow by a mid-single-digit percentage on year, excluding the effects of acquisitions, divestments and if markets conditions remain unchanged. The Ebitda margin should be more than 18%, it said.

Hunter Douglas posted sales of $3.54 billion for 2020, which was lower than the previous year. "The 3.9% sales decrease reflects a 4.6% volume decrease, 0.4% negative currency impact, 2.8% increase from acquisitions and 1.7% decrease from divestments," it said at the time of the results. Ebitda, however, was up 5.4% on year at EUR530.7 million.

 

Write to Olivia Bugault at olivia.bugault@wsj.com

 

(END) Dow Jones Newswires

December 31, 2021 07:27 ET (12:27 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.
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