EAGAN, MN - Norcraft Companies, Inc., (NYSE: NCFT) manufacturer of kitchen and bathroom cabinetry in the United States and Canada, began trading on the new York Stock Exchange Nov. 6, 2013.
Manufacturing under Mid Continent Cabinetry, Norcraft Cabinetry, UltraCraft, StarMark Cabinetry, Fieldstone Cabinetry, Brookwood and Urban Effects brands, parent Norcraft Companies upsized its initial stock offering - first announced July 30 in an SEC filing - by 959,561, shares to of common stock to 6,397,073 shares, and raised the price to $16.00 per share.
Founded in 1966, Norcraft Companies employs 1,892 at its three factories in Newton, KS, Lynchburg, VA, and Cottonwood, MN. There are 15 job openings posted at its website by ADP, including cabinet finishers, inspectors, trimmers, and hardware installers. The company lost $3.7 million on $330 million in revenue last year. Like other major cabinetry and vanity manufacturers, it has struggled through the housing downturn.
The management team consists of Kurt Wanninger, President; three VP Sales: James Buller, Jack Laninga, and Chris Reynolds; Monte Young, Vice President of Operations; and John Loucks, Vice President of Supply Chain.
In its prospectus, Norcraft said kitchen and bathroom cabinet dealers accounted for 87% of its net sales, home builders 8% and wholesale retailers, 5% of net sales.
"We believe our focus on kitchen and bathroom cabinet dealers enhances our ability to sell our stock and semi-custom cabinet offerings," the company said, revealing it has a network of 2,000 active customers and 118 internal and independent sales representatives - 104 dedicated exclusively to one of Norcraft’s divisions. It owns six manufacturing facilities, "with significant excess capacity," North American distribution capabilities for all its brands through two service and distribution centers, and four warehouses that are located throughout the U.S. and Canada. It also operates five retail locations.
Norcraft Companies Fieldstone Cabinetry and StarMark Cabinetry offer custom stain, custom stain with glaze, custom paint and custom paint with glaze, and can be modified by 1/8” increments. Mid Continent Cabinetry offers custom paint, more than 600 possible door style and finish combinations, and nearly 1,100 cabinet types and sizes. Ultracraft Cabinetry is targeted to segments wanting a custom look without a custom price.
Cabinetry brands Norcraft, Brookwood, Mid Continent, StarMark, Fieldstone and Urban Effects brands are KCMA certified and CARB compliant.
The Company has granted the underwriters a 30-day option to purchase up to an additional 959,561 shares from the Company. Trading under the symbol "NCFT," the offering is expected to net over $92 million, allowing Norcraft Companies to retire several forms of existing debt that has kept it afloat during the downturn.
Citigroup, UBS Investment Bank, Deutsche Bank Securities and RBC Capital Markets are acting as joint book-runners of the offering. KeyBanc Capital Markets and Stephens Inc. are acting as co-managers. Though the original filing request to file was made July 30, after several amendments Norcraft Cabinetry's expanded stock offering was okayed by the Securities and Exchange Commission November 6, 2013.
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