DEERFIELD, IL- Fortune Brands Home & Security (NYSE: FBHS) has signed an agreement to acquire Norcraft Companies, Inc., a leading, publicly-owned manufacturer of kitchen and bathroom cabinetry.
"The combination of the two best cabinet businesses in North America is exciting," said Chris Klein, chief executive officer, Fortune Brands. "Norcraft has proven capabilities and great relationships in the dealer channel with strong operating management throughout their business. The combination will strengthen our overall product offering, round out our regional market penetration and enhance our frameless capabilities. We see many opportunities for enhanced growth by bringing these businesses together."
"We believe Fortunes Brands' scale and resources provide a highly complementary platform to continue enhancing our entire organization while generating meaningful value for our shareholders," said Mark Buller, chairman and chief executive officer of Norcraft. "We look forward to the combination of these two best-in-class cabinet businesses and are excited by the prospects for the future."
The purchase price is $25.50 per share, resulting in an enterprise value of approximately $600 million. The transaction will be financed under Fortune Brands' existing credit facility. Norcraft's 2014 sales were $376 million. Additional details will be provided on the Fortune Brands first quarter earnings call.
Fortune Brands expects to launch a tender offer for all outstanding Norcraft shares in approximately 15 days. Upon completion of the tender offer, Norcraft will be merged into Fortune Brands' cabinets business. The transaction is subject to the tender of a majority of Norcraft's shares and certain other customary closing conditions, and is expected to close in the second quarter.
Strategic acquisitions are one component of Fortune Brands' overall strategy to both grow the business and create incremental value for shareholders through use of its strong balance sheet and cash flow.
About Fortune Brands
Fortune Brands Home & Security, Inc. (NYSE: FBHS), headquartered in Deerfield, Ill., creates products and services that help fulfill the dreams of homeowners and help people feel more secure. The Company's trusted brands include MasterBrand cabinets, Moen faucets, Therma-Tru entry door systems, and Master Lock and SentrySafe security products. Fortune Brands holds market leadership positions in all of its segments. Fortune Brands is part of the S&P MidCap 400 Index.
Source: Fortune Brands -(BUSINESS WIRE)
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