Masonite shares jump 16 per cent on takeover offer
Last Updated: Thursday, December 23, 2004 | 4:46 PM ET
CBC News
Shares in the Mississauga, Ont.-based company jumped $5.65 to close at $41.15 on the TSX.
After markets closed Wednesday, door maker Masonite said it had agreed to be acquired by Kohlberg, Kravis, Roberts & Co. (KKR) in an all-cash offer worth $40.20 a share.
Analysts said the fact that Masonite shares closed almost a dollar higher than the offer price indicates that some in the market are expecting a higher bid may emerge.
Masonite said its management team will remain in place and under terms of the deal would have to buy five per cent of the equity of Masonite at the same price KKR is paying for its shares.
"Our entire management team will continue to focus on providing superior service and products to our customers worldwide," Masonite CEO Philip Orsino said in a release.
KKR executive Paul Raether said he expected to "continue its expansion as a leading manufacturer of door products and look forward to working with management on the next stage of the company's development."
KKR, a private equity firm that specializes in management buyouts, has been active in Canada before. In 1999, a KKR-led group bought Shoppers Drug Mart for $2.6 billion, later making millions when it sold most of its Shoppers shares.
In 2002, it teamed up with the Ontario Teachers' Pension Plan to buy the Yellow Pages directory business from Bell Canada for $3 billion. KKR and Teachers' spun off that business into an income trust, again reaping a handsome reward.
Masonite is one of the biggest makers of steel and wooden doors in the world. Canadian door-maker Premdor acquired U.S.-based Masonite Corp. in 2001 and assumed the name Masonite International.
Masonite's profits have been rising along with the housing boom. In its most recent quarter, the company reported revenues grew 29 per cent to $597.2 million US, while net income jumped 19 per cent to $36.7 million US.
Masonite International has more than 80 plants in 17 countries around the world. It employs 14,000 people.
Share Tools
Top News Headlines
- Canadian Pacific strikers face back-to-work legislation
- Labour Minister Lisa Raitt is prepared to end the Canadian Pacific Railway strike if necessary, after both CP and the union rejected a proposal for voluntary arbitration by the government-appointed negotiator on Sunday. Raitt says she is "extremely disappointed." more »
- Syrian regime denies role in Houla massacre
- The UN Security Council condemned the Syrian regime at an emergency meeting Sunday, holding president Bashar al-Assad's military responsible for the massacre of more than 100 people, dozens of whom were children younger than 10 years old. more »
- Ryder Hesjedal wins prestigious Giro d'Italia
- Victoria native Ryder Hesjedal has become the first Canadian to win one of the cycling world's three Grand Tour events, wrapping up the 2012 Giro d'Italia with an excellent performance in the final stage in Milan. more »
- Neighbour may have helped find missing kids in Mexico
- Two Winnipeg children who had been missing for nearly four years were found in Mexico after a man raised concerns about his neighbour, according to a private investigator. more »
Latest Business Headlines
- Bankia asks Spain for €19B
- The board of directors of Spain's troubled bank, Bankia, has asked the Spanish government for €19 billion ($24.5 billion Cdn) in financial support. more »
- EI reforms aim to boost employment, Flaherty says
- Finance Minister Jim Flaherty defended his government's proposals to change employment insurance, saying the aim is to remove "disincentives to employment." more »
- Employment Insurance review boards to be scrapped
- The federal government is scrapping two review boards used by people appealing decisions made about their employment insurance. more »
- Ottawa moves to limit foreign investment reviews
- The federal government is raising to $1 billion the amount of foreign money that can go into a Canadian company before the investment is reviewed. The review has been used in the past to block foreign takeovers of MDA and Potash Corp. more »
Lang & O'Leary Exchange
Markets
| Index | Last Trade | Change |
|---|---|---|
| TSX COMPOSITE | 11576.47 | 10.4 |
| DOW | 12454.83 | -74.92 |
| NASDAQ | 2837.53 | -1.85 |
| SP 500 | 1317.82 | -2.86 |
| NYSE COMPOSITE | 7534.32 | -18.01 |
| AMEX | 2227.37 | 1.45 |
| TSX-VENTURE | 1309.27 | 26.8 |
The data on this site is informational only and may be delayed; it is not intended as trading or investment advice and you should not rely on it as such.
Business Features
- Accused in blast that killed Alberta mom handled her funds
- Seniors float above Montreal's Quartier Latin
- Remains found in bag on Cape Breton river ID'd
- Neighbour may have helped find missing kids in Mexico
- Quebec students and province to resume talks
- Lip-dub marriage proposal an internet hit
- Syrian regime denies role in Houla massacre
- B.C. NDP calls for unity in fighting coast guard closure
- Canadian Pacific strikers face back-to-work legislation
