DEERFIELD, Ill. — Fortune Brands Home & Security, Inc., a home and security products company, has 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. The acquisition price is 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. “Fiberon brings leadership in performance materials sustainably made in the U.S.A. from recycled materials. Similar to Therma-Tru’s leadership in advanced material doors, Fiberon has built its business in the most attractive segment of the decking category– non-wood, capped composites.”
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% annually and now represent approximately one quarter of the decking market, Fortune Brands said in a press release announcing the acquisition agreement. The 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,” said Klein. “Our execution and momentum within our Therma-Tru door brand coupled with Fiberon’s successful business model and product line create an exciting opportunity to accelerate growth and value creation. The acquisition is expected to be accretive to earnings by approximately 5-6 cents in 2019 and approximately 9-10 cents in 2020.”
“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, CEO and President, Fiberon. “We are excited to join Fortune Brands and create new opportunities for Fiberon to thrive.”
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.