DEERFIELD, IL - MasterBrand Cabinets parent Fortune Brands Home & Security announced plans to acquire WoodCrafters Home Products LLC, a manufacturer of bathroom vanities and tops based in Weslaco, TX. Estimated at $300 million, the transaction is scheduled to be finalized before the end of the year.
According to FBHS, WoodCrafters will be integrated into the MasterBrand Cabinets business unit, part of FBHS' Kitchen & Bath Cabinetry segment. Other brands under MasterBrand include: Aristokraft , Dynasty by Omega, KitchenCraft, Decora, Homecrest, Omega, Diamond, Kemper and Schrock.
Brands under WoodCrafters include: St. Paul Home Products, Total Bath Solutions, Domain and Ready Kitchens. According to the company's website, products are sold through home improvement centers with the latter two brands available only in Mexico.
"We've been a leader in kitchen and bath cabinets for years. WoodCrafters' strength in manufacturing vanities and vanity sink tops immediately strengthens our offerings for the bathroom, with more products, and more control over our supply chain and capacity in that category," FBHS CEO Chris Klein said in a statement. "The cabinet market is experiencing 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."
FBHS said WoodCrafters' current management, operations and locations would continue. Founded in 1983, WoodCrafters has manufacturing facilities in southernTexas and northern Mexico, and approximately 2,000 employees. Annual sales were approximately $230 million.
The acquisition was announced May 2, along with FBHS' first quarter 2013 results. FBHS said net sales for the quarter reached $890 million, an 11 percent year--over-year increase. The operating income was $56.6 million, compared to $21.3 million in the prior year quarter.
"Sales in our home products segments grew a combined 16 percent vs. last year, once again outperforming the market, with our cabinets, plumbing and entry doors performing especially well. Importantly, this was very profitable growth, with total company operating income before charges/gains tripling. New housing construction continued at a strong pace, and spending for home repairs and remodeling began to improve despite cooler weather in many parts of the country that held back exterior projects like windows," Klein said.
Overall, the company reported Kitchen & Bath Cabinetry net sales were up 11 percent, with operating income before charges/gains of $14.9 million compared to a loss of $3.9 million last year. FBHS noted gains were across all parts of the business, with new construction leading the momentum.
In its other business units, FBHS reports Plumbing & Accessories net sales were up 26 percent, and operating income before charges/gains was up 52 percent as share gains were evident across the business. Advanced Material Windows & Door Systems net sales were up 10 percent, with entry doors driving the gains. And Security & Storage net sales were down 14 percent as planned, primarily driven by storage sales that faced unfavorable comparisons due to heavy promotional activity at a key retailer in the prior year. Segment operating income before charges/gains was up modestly.
Based on these figures, FBHS now projects a 9 to 11 percent increase in net sales for the full-year 2013."We have the confidence to raise our annual outlook because the market is improving and our performance outpaced the recovering market," Klein said. "We are executing well, gaining share and growing profits."
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