DEERFIELD, Ill.--(BUSINESS WIRE)--Aug. 23, 2018--
Fortune Brands Home & Security, Inc. (NYSE: FBHS), an industry-leading
home and security products company, today announced it has signed an
agreement to acquire Fiberon, LLC, a leading manufacturer of outdoor
performance materials used primarily in decking, railing and fencing
products. Fiberon will join Fortune Brands’ new Doors & Security segment
on closing and has agreed to be acquired for approximately $470 million.
“The acquisition of Fiberon provides exciting category expansion and
product extension opportunities for our Doors & Security segment into
the outdoor living space— one of the fastest growing areas of the home,”
said Chris Klein, chief executive officer, Fortune Brands. “Fiberon
brings leadership in performance materials sustainably made in the
U.S.A. from recycled materials. Similar to Therma-Tru’s leadership in
advanced material doors, Fiberon has built its business in the most
attractive segment of the decking category– non-wood, capped composites.”
The $2.5 billion decking market is a critical part of outdoor living
spaces with growing conversion to non-wood materials. Capped composite
non-wood products where Fiberon has focused its business are growing at
nearly 10% annually and now represent approximately one quarter of the
decking market. This exceptional growth is driven by demand for
innovations in finishes, textures, colors and styles coupled with low
maintenance and lasting durability versus traditional wood.
“Our Doors & Security platform has the scale and capabilities to further
Fiberon’s penetration of the market across our existing customers and
distribution channels in this growing market segment,” said Klein. “Our
execution and momentum within our Therma-Tru door brand coupled with
Fiberon’s successful business model and product line create an exciting
opportunity to accelerate growth and value creation. The acquisition is
expected to be accretive to earnings by approximately 5-6 cents in 2019
and approximately 9-10 cents in 2020.”
“Fortune Brands’ strong distribution, commitment to brands, innovation
and design, and superior execution are a powerful combination to drive
sales and profit growth,” said Doug Mancosh, chief executive officer and
president, Fiberon. “We are excited to join Fortune Brands and create
new opportunities for Fiberon to thrive.”
In 2017, Fiberon had approximately $200 million in annual sales. Fiberon
has approximately 475 associates with offices and operations in
Meridian, Idaho and New London, North Carolina. The Company plans for
Fiberon to operate as a part of the Doors & Security segment.
The closing of the transaction is subject to regulatory approval and is
expected to occur within the next 30 days.
About Fortune Brands
Fortune Brands Home & Security, Inc. (NYSE: FBHS), headquartered in
Deerfield, Ill., creates products and services that fulfill the dreams
of homeowners and help people feel more secure. The Company's operating
segments are Plumbing, Cabinets and Doors & Security. Its trusted brands
include Moen, Perrin & Rowe, Riobel, Rohl, Shaws and Victoria + Albert
under the Global Plumbing Group (GPG); more than a dozen core brands
under MasterBrand Cabinets; Therma-Tru entry door systems; and Master
Lock and SentrySafe security products under The Master Lock Company.
Fortune Brands holds market leadership positions in all of its segments.
Fortune Brands is part of the S&P 500 Index. For more information,
please visit www.FBHS.com.
Cautionary Statement Concerning Forward-Looking
This release contains certain “forward-looking statements” regarding
future financial performance and the effects of the Fiberon acquisition.
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 including the factors discussed in Item 1A
of the Fortune Brands Home & Security, Inc. Annual Report on Form 10-K
for the year ended December 31, 2017, filed with the Securities and
Exchange Commission. In addition, this release contains forward-looking
statements that involve risks and uncertainties associated with the
acquisition. These include: the satisfaction of closing conditions for
the transaction, market conditions and the impact of any failure to
complete the transaction. 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180823005659/en/
Source: Fortune Brands Home & Security, Inc.
Fortune Brands Home & Security, Inc.
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