DEERFIELD, Ill.--(BUSINESS WIRE)--
Fortune Brands Home & Security, Inc. (NYSE: FBHS), an industry-leading
home and security products company, today announced that it has
completed the acquisition of WoodCrafters Home Products, a leading,
privately-owned manufacturer of bathroom vanities and vanity sink tops.
FBHS announced an agreement to acquire WoodCrafters on May 2, 2013.
"We've been a leader in kitchen and bath cabinets for years.
WoodCrafters' strength in vanities and integrated sink basin tops
immediately strengthens our offerings for the bathroom, with more
products, more control over our supply chain and expanded low-cost North
American manufacturing capacity," said Chris Klein, chief executive
officer, Fortune Brands Home & Security. "The cabinet market is in the
early stages of recovery. Now is the perfect time to add to our
leadership position as the leading cabinet manufacturer in North America
with this strategic acquisition."
The Company completed the acquisition for a purchase price of $300
million which should be equivalent to 7.5 times annual EBITDA. Over the
next couple of years, potential synergies resulting from the acquisition
could reduce the purchase multiple to closer to 6 times EBITDA.
WoodCrafters, which will become part of the Company's Kitchen & Bath
Cabinetry segment, is headquartered in Weslaco, Texas and has estimated
annual sales of $230 million. WoodCrafters operates manufacturing
facilities in southern Texas and northern Mexico. The Company plans for
WoodCrafters to operate as a business unit of MasterBrand Cabinets,
Inc., the Company's kitchen & bath cabinetry unit, with its current
management team, staffing, operations and locations. WoodCrafters has
approximately 2,000 associates.
About Fortune Brands Home & Security, Inc.
Fortune Brands Home & Security, Inc. (NYSE: FBHS), headquartered in
Deerfield, Ill., creates products and services that help fulfill the
dreams of homeowners and help people feel more secure. The Company's
trusted brands include Master Lock security products, MasterBrand
cabinets, Moen faucets, Simonton windows and Therma-Tru entry door
systems. FBHS holds market leadership positions in all of its segments.
The Company's more than 16,000 full-time associates generated $3.6
billion in net sales in 2012. FBHS is part of the S&P MidCap 400 Index.
For more information, please visit www.FBHS.com.
CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING
This press release contains certain "forward-looking statements"
regarding business strategies, market potential, future financial
performance and other matters. Statements preceded by, followed by or
that otherwise include the words "believes," "expects," "anticipates,"
"intends," "projects," "estimates," "plans," "outlook," and similar
expressions or future or conditional verbs such as "will," "should,"
"would," "may" and "could" are generally forward-looking in nature and
not historical facts. Where, in any forward-looking statement, we
express an expectation or belief as to future results or events, such
expectation or belief is based on the current plans and expectations of
our management. Although we believe that these statements are based on
reasonable assumptions, they are subject to numerous factors, risks and
uncertainties that could cause actual outcomes and results to be
materially different from those indicated in such statements. These
factors are discussed in Item 1A of our Annual Report on Form 10-K for
the year ended December 31, 2012, filed with the Securities and Exchange
Commission. In addition, this press release contains certain
forward-looking statements that involve risks and uncertainties
associated with the transaction between Fortune Brands Home & Security,
Inc. ("FBHS") and WoodCrafters Home Products Holding, LLC
("WoodCrafters"). These risks and uncertainties include: market
conditions; the risk that WoodCrafters and FBHS will not realize the
anticipated benefits of the transaction; the potential inability to
successfully operate or integrate WoodCrafters' business; and other
factors beyond the companies' control and the risk factors and other
cautionary statements. The forward-looking statements included in this
release are made as of the date hereof, and except as required by law,
we undertake no obligation to update, amend or clarify any
forward-looking statements to reflect events, new information or
circumstances occurring after the date hereof.
Fortune Brands Home & Security, Inc.
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