Fortune Brands Home & Security (NYSE: FBHS), which releases fourth quarter financial results Jan. 31, would make a good buy for cabinetry and home improvement giant Masco.

Cramer touched on Fortune Brands, parent of MasterBrand cabinets, as well as Masco, and Home Depot on his Jan. 14 TV show, which was transcribed and posted by Seeking Alpha. Said Cramer:

"2013 may be the year for mergers. M&A activity is at the highest level in four years, and this trend should continue for 2013. Cramer thinks Masco (MAS) should buy Fortune Brands Home & Security (FBHS) to take advantage of the housing rebound. 2012 was the best year for housing starts in 4 years, and when new households are established, there is a greater demand for sinks, cabinets, locks and security systems.

"Both stocks will likely do well even if there is no merger, but if the companies combine by the end of the year, the resulting company can streamline costs by cutting duplicate divisions and be in a better position to compete against Home Depot (HD) and Lowe's (LOW). Fortune Brands can give Masco much-needed exposure to China, and the two can create a house of winning brands under one roof. Both stocks rallied in 2012, but have more room to run on the housing boom and a potential merger." (Find the rest of the program at Seeking Alpha.)

While Cramer may be purely speculating, the recent appointment by Fortune Brands Home & Security of Chuck Elias as VP business development, with an assignment that includes merger activity, could mean something is in development for the parent of Therma-Tru Doors, Simonton Windows, as well as MasterLock and MasterBrand.

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