DEERFIELD, IL - Its tender offer Norcraft Cabinets' parent has been completed, Fortune Brands Home & Security (NYSE: FBHS) says, with the purchase of all outstanding shares of common stock - 14,798,762 in all, or 78% - of Norcraft Companies, Inc. (NYSE: NCFT), for $25.50 each.
FBHS owns MasterBrand Cabinets among other kitchen cabinetry, millwork and home building manufacturers. FBHS is buying Norcraft through a wholly-owned subsidiary.Norcraft reported net sales of $376 million for the year ended March 31, a 10.7% increase.
FBHS CEO Chris Klein said the buy “rounds out our regional market penetration and enhances our frameless capabilities. Strategic acquisitions are one component of Fortune Brands’ overall strategy." Klein says, "We see many opportunities for enhanced growth by bringing these businesses together.”
The tender offer was originally launched April 14, after a March 30, 2015, announcement that Fortune Brands and Norcraft Cabinets had reached a merger agreement. Norcraft, whose brands include Fieldstone Cabinetry, Mid Continent Cabinetry, Norcraft Cabinetry, StarMark Cabinetry, UltraCraft Cabinetry, and Urban Effects Cabinetry, is expected to add to Fortune Brands’ earnings in 2016.
The Norcraft brand will continue as Norcraft becomes an indirect wholly-owned subsidiary of Fortune Brands. Norcraft common stock will be delisted from the New York Stock Exchange.
Have something to say? Share your thoughts with us in the comments below.