Deerfield's Fortune Brands buys $470M company
Fortune Brands Home & Security Inc., a home and security products company, said it signed an agreement to acquire Fiberon LLC, a manufacturer of outdoor performance materials used primarily in decking, railing and fencing products.
Fiberon will join Fortune Brands' new Doors & Security segment on closing and has agreed to be acquired for approximately $470 million.
"The acquisition of Fiberon provides exciting category expansion and product extension opportunities for our Doors & Security segment into the outdoor living space - one of the fastest growing areas of the home," said Chris Klein, chief executive officer, Fortune Brands.
The $2.5 billion decking market is a critical part of outdoor living spaces with growing conversion to non-wood materials. Capped composite non-wood products where Fiberon has focused its business are growing at nearly 10 percent annually and now represent approximately one quarter of the decking market. This exceptional growth is driven by demand for innovations in finishes, textures, colors and styles coupled with low maintenance and lasting durability versus traditional wood.
"Our Doors & Security platform has the scale and capabilities to further Fiberon's penetration of the market across our existing customers and distribution channels in this growing market segment," Klein said.
"Fortune Brands' strong distribution, commitment to brands, innovation and design, and superior execution are a powerful combination to drive sales and profit growth," said Doug Mancosh, chief executive officer and president, Fiberon.
In 2017, Fiberon had approximately $200 million in annual sales. Fiberon has approximately 475 associates with offices and operations in Meridian, Idaho and New London, North Carolina. The company plans for Fiberon to operate as a part of the doors & security segment.
The closing of the transaction is subject to regulatory approval and is expected to occur within the next 30 days.